“We are ready to respond”: Canada and Mexico stand ready for possible US tariffs

The United States will certainly impose customs duties of up to 25% on Canadian and Mexican products as of February 1st. This imposition would put an end to a 30-year-old free trade system.

Canada and Mexico are bracing for a possible U.S. decision on whether to impose 25% tariffs on U.S. imports from both countries as a deadline set by Donald Trump expires Saturday. Mexican President Claudia Sheinbaum said Friday she was waiting with a “cool head” for a decision from the White House, which still appeared uncertain just hours before the deadline. “We will always defend the dignity of our people, respect for our sovereignty and a dialogue as equals without subordination,” she said.“We will wait, as I have always said, with a cool head, before making decisions. We are prepared and we are maintaining this dialogue”, she continued.

For his part, Canadian Prime Minister Justin Trudeau threatened on Friday to respond immediately and forcefully to possible American customs duties. “We are ready to react, a determined, energetic but reasonable and immediate response. This is not what we want, but if he (Donald Trump, editor's note) goes ahead, we will also act”, he said in a televised address, adding that all options were on the table. According to a source familiar with the matter, Canada has outlined a list of immediate retaliatory measures, including tariffs on orange juice from Florida, Donald Trump's adopted home state. Canadian shipments to the United States represent 75% of Canada's total exports, whose economy could therefore be heavily affected by the customs duties mentioned by Donald Trump. “I'm not going to sugarcoat things: our country could face difficult times in the days and weeks to come”, warned Justin Trudeau.

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Fight against fentanyl

The United States is demanding that Canada fight fentanyl trafficking more effectively and that Mexico stem the flow of migrants across their shared border. Both countries are among Washington's main trading partners. The tariffs will go into effect on February 1, White House spokeswoman Karoline Leavitt said on Friday, after Reuters reported a possible one-month delay.

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The spokeswoman declined to confirm possible exemptions after a member of Donald Trump's administration told Reuters that the US president was exploring the possibility of allowing rare exemptions on some products.

The imposition of tariffs by the United States against Mexico and Canada would end a 30-year-old free trade system that has built a tightly integrated North American economy. Economists and business leaders have warned that the U.S. tariffs could cause significant increases in the prices of imports such as aluminum and lumber from Canada, fruits, vegetables, beer and electronics from Mexico, and motor vehicles from both countries.