Trump vs Trudeau: U.S.-Canada tariff war impacts markets
The ongoing tariff dispute between the U.S. and Canada continues, with tensions between Donald Trump and Justin Trudeau causing a sharp drop in the stock markets.
The U.S. president strongly criticized the Canadian prime minister’s statements after Ottawa imposed 25% tariffs on certain American goods in retaliation for Washington’s taxes. In a post on Truth Social, Trump once again sarcastically called Trudeau the "Governor" of Canada and threatened to impose similar tariffs.
The dispute has sparked international reactions, and U.S. stock markets have experienced sharp declines.
Prime Minister Justin Trudeau quickly responded, labeling the measure "stupid" and announcing retaliatory tariffs.
"Canada will impose 25% tariffs on $155 billion worth of American goods, starting immediately with tariffs on goods worth $30 billion and additional tariffs on the remaining $125 billion of American products in 21 days," said the Canadian prime minister.
Trudeau also accused the Trump administration of trying to destabilize Canada’s economy to justify a potential annexation.
"What he wants to see is a complete collapse of the Canadian economy, because that would make it easier for him to annex us. But that will never happen," Trudeau emphasized.
In response, Donald Trump sharply warned of immediate actions from the U.S. government. Starting Tuesday, the U.S. government imposed 25% tariffs on Mexico and Canada, and 20% tariffs on imports from China.
Mexico remains silent about its response, while China states it is prepared for war with the U.S.
"We have decided to respond with both tariff and non-tariff measures, which I will announce publicly next Sunday (March 9). But we do not intend to start an economic or trade confrontation," said Mexico’s president, Claudia Sheinbaum.
"If war is what the United States wants, whether it’s a trade war, a tariff war, or any other kind of war, we are prepared to fight to the end. We urge the U.S. to stop the intimidation and return to dialogue and cooperation as soon as possible," said Lin Jian, spokesperson for China’s Ministry of Foreign Affairs.
As trade tensions intensify, financial markets continue to react negatively, and analysts warn that these measures could have significant consequences for the global economy.
Translation by Iurie Tataru
