US President Donald Trump stated that the relationship between Americans and Canadians may be strained after the trade war that has risen since he announced tariff hikes against Canada, Mexico and China.
In response, Canadian Prime Minister Justin Trudeau has announced retaliatory tariffs, including a 25 per cent levy on US goods and according to reports, Canada will take legal action under the 𓆉relevant international bodies to challenge the 25 per cent tariff imposed by Trum🐈p administration on most Canadian goods.
Tru🧸mp re🐼acting to Canada's announcement of tariff hike claimed that Canada would “cease to exist” without its trade surplus with the United States.
Trump announced 💫major tariffs on goods from Mexico, Canada, and China, demanding that these countries take stronger measures to prevent fentanyl from entering the U.S., and, for Canada and Me🌟xico, to address illegal immigration.
Th🌳e trade penalties that Trump signed Saturday at his Florida🤡 resort caused a mix of panic, anger and uncertainty, and threatened to rupture a decades-old partnership on trade in North America while further straining relations with China. Mexico and Canada happen to be the top two trading partners of US.
Canada To Take Legal Action Against US
While Trump is placing a 25 per cent tariff on Canadian goods, with a 10 per cent tax on oil, natural gas and electricity, beginning on Feb 18. Canada is imposing 25 p🌟er cent tariffs on more than USD 155 billion on US products, including orange juice, peanut butter, wine, beer, motorcycles, and cosmetics.
According to a report at The Hindu, a senior Canadian government official💖 said that Canada will take legal action under the relevant international bodies to challenge the 25% tariffs imposed by the United States on most Canadian goods.
The official reportedly said, "We will obviously pursue the legal recourse that we believe we have through the agreements that we share wit💧h the𓃲 United States." the official said, briefing reporters in Ottawa on condition of anonymity. The Canadian government may release another list in few weeks for other tariff hikes, said the official.
The official stated th🅰at the Canadia🍬n government views Trump’s move as illegal, arguing that it breaks the trade agreements between the two countries under their free trade deal and the World Trade Organization.
What Is Canada Saying?
Prime Minister Justin Trudeau is en💟couraging Canadians🥀 to buy more Canadian goods, and says Trump's moves will only cause pain across North America.
Canada's ambassador to Washington has said the US had a USD 75 bil꧟lion trade deficit with Canada last year, but noted that one-third of what Canada sells into the US is energy exports and that there is a deficit when oil prices are high. About 60 per cent of US crude oil imp♛orts are from Canada.
“Canadians are perplexed,” said the country's US ambassador, Ki🌠rsten Hillman. “We view ourselves as your neighbour, your closest friend, your al🍰ly.”
Canadians “just don't understand where this is coming from ... and probably there's a little bit of hurt🐎, right?” Hillman, the ambassador, told ABC's “This Week” on Sunday.
Mexico's president, Claudia Sheinbaum, also announced new tariffs and suggested the U💦S should do more witᩚᩚᩚᩚᩚᩚᩚᩚᩚ𒀱ᩚᩚᩚhin its own borders to address drug addiction.
She and Trudeau spoke after Trump's announcement and agreed “to enhance the strong bilateral relations” between Canada and M𓆉exico, 💮according to the prime minister's office.
What Is Trump And His Admin Saying On Tariff Hikes?
Trump in a social media post wrote, "WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!)," he added, "BUT WE WILL MAKE AMERICA G🥃REAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE ♊THAT MUST BE PAID."
According to the Associated Press, his administration has not said how high that price could be or what improvements would need to be seen in stopping illegal immigration and tᩚᩚᩚᩚᩚᩚᩚᩚᩚ𒀱ᩚᩚᩚhe smuggling of fentanyl to merit the removal of the tariffs that Trump imposed under the legal justification of an economic emergency. The tariffs 🎃are set to launch Tuesday.
“If prices go up, it's because of othওer people's reactions to America's laws,” his homeland secretary, Kristi Noem, said on NBC's “Meet♏ the Press.”
In his Truth Social post, Trump took particular aim at Canada, which responded with retaliatory m🍒easures🌠.
Trump railed against Canada's trade surplus ꦐwith the United States: “We don't need anything they have. We have unlimitedꦡ Energy, should make our own Cars, and have more Lumber than we can ever use.”
Trump contended that without that surplus, "Canada ceases to exist as a viable Country. Harsh but true! Therefore, Canada should become our Cherished 51st State. Much lower taxes, and far better military protection for the people of Canada —🐼 AND NO TARIFFS!”
Despite Trump's c𓃲laim that the US does not need Canada, one-quarter of the oil that the America consumes per day is from its ally to the north.
More than 75 per cent of Canada's exports go to the US. Canada will first target alcohol, cosmetics and paper products; a second round later will include passenger vehicles, truck🌳s, steel and aluminum products, certain fruits and vegetables, beef, pork, dairy products and more.
Canada is the largest export market for 🔥36 states and Mexico is the largest trading partner of the US.
The Chinese government said it would take steps to defend its economic interests and intends to file a lawsuit with the World Trade Organisation.
(With inputs from AP)
