WASHINGTON: Canadian Prime Minister Justin Trudeau launched a fierce attack on Donald Trump’s escalating trade war, calling the newly imposed tariffs “dumb” and destructive for global markets.
Trump’s Tariff Hike Sparks Outrage
Trump’s new 25% tariffs on imports from Canada, Mexico, and China have triggered swift retaliation from all three nations.
- Canada imposed 25% tariffs on $30 billion worth of US goods, with plans to extend them to $125 billion in three weeks.
- China filed a complaint with the WTO and announced 10-15% tariffs on US agricultural imports, including soybeans and poultry.
- Mexico is set to announce countermeasures this Sunday.
Canada Strikes Back
Trudeau accused Trump of deliberately trying to cripple Canada’s economy and labeled the tariffs as an act of economic aggression.
Ontario Premier Doug Ford took drastic steps, including:
- Ordering LCBO (Liquor Control Board of Ontario) to remove all US-made alcohol from its shelves.
- Cancelling a $100 million contract with Elon Musk’s SpaceX for satellite internet.
- Banning US companies from bidding on Ontario’s public contracts.
Ford even threatened to cut off power to the US if Trump escalates the tariffs further. Canada currently supplies electricity to Michigan, New York, and Minnesota, powering 1.5 million American homes.
China’s Aggressive Countermeasures
Beijing, in response, suspended all US lumber imports and halted soybean shipments from three major American exporters. China’s foreign ministry vowed to fight Trump’s trade war “to the bitter end.”
Impact on US Consumers & Businesses
The tariffs are expected to raise consumer prices and disrupt key industries in the US:
- Retail: Target CEO Brian Cornell warned of higher fruit and vegetable prices in the coming days.
- Electronics: Best Buy CFO Matthew Bilunas expressed concerns over rising costs.
- Housing: The US homebuilding sector is at risk, as 70% of softwood lumber and gypsum imports come from Canada and Mexico.
Trump’s Response & Market Reaction
Trump mocked Trudeau on Truth Social, referring to him as “Governor Trudeau of Canada” and vowing further retaliatory tariffs. Meanwhile, global markets tumbled, with the S&P 500 erasing all gains since Trump’s election.
With economic tensions soaring, experts warn this could spiral into the most destructive trade war in modern history, further straining US relations with key allies.
