Canadian officials have stated that Canada is prepared to retaliate following President Donald Trump's announcement of a potential 25% tariff on Canada and Mexico effective February 1st. Trump has been vocal about imposing tariffs on various trading partners, with Canada and Mexico being key targets.
The timeline for these tariffs remains uncertain, as Trump has requested a report on the matter to be submitted by April 1st. Despite Trump's assertion that foreign countries would bear the brunt of these tariffs, it is domestic importers and consumers who would ultimately pay the price.
Canadian Foreign Minister emphasized the efforts to prevent tariffs while also preparing for potential retaliation. The Finance Minister acknowledged Trump's unpredictability but assured that Canada is ready to respond to any scenario.
Canada, being heavily reliant on trade, exports 75% of its goods to the U.S., including automobiles and parts. The country serves as the top export destination for 36 U.S. states, with billions of dollars worth of goods crossing the border daily.
Despite Trump's claims about the U.S. not needing Canada, a significant portion of the oil consumed in America comes from its northern neighbor. Canadian officials warned against the implications of imposing tariffs, citing potential impacts on the cost of living, job market, and supply chains in the U.S.
