Trump’s Tariff Threat Forces Action from Mexico and Canada

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President-elect Donald Trump’s threat to impose 25% tariffs on Mexican goods has stirred strong reactions from Mexico and Canada. Mexican President Claudia Sheinbaum, showing defiance, announced that Mexico is ready to retaliate with tariffs of its own if the U.S. follows through. Sheinbaum, however, emphasized her willingness to engage in talks but made it clear that the flow of drugs remains a U.S. problem.

Sheinbaum’s statement on tariffs could escalate tensions, particularly affecting U.S. automakers with plants on both sides of the border. Mexico’s automotive sector, responsible for over 35% of its manufactured exports, could face significant setbacks if tariffs are imposed. Sheinbaum’s message was clear: “One tariff will follow another” as the two nations risk destabilizing their shared businesses.

On the Canadian front, Prime Minister Justin Trudeau wasted no time in responding to Trump’s threats. Within hours, Trudeau called Trump, signaling Canada’s commitment to addressing trade and border security concerns. In a statement, Trudeau emphasized Canada’s crucial role in U.S. domestic energy supply, with 60% of U.S. crude oil imports originating from Canada. The Canadian government is now actively engaging with Trump’s administration to avoid any trade disruption.

Trump’s tariff threat, which targets illegal immigration and drug trafficking from both Mexico and Canada, is having the desired effect—pushing these countries to the table. The conversation is just beginning, but the Trump Effect is already driving significant diplomatic action.

Mexico suggests it would impose its own tariffs to retaliate against any Trump tariffs https://t.co/eB8UmCXFfH

— The Associated Press (@AP) November 26, 2024

A 25 per cent tariff would be devastating to workers and jobs in both Canada and the U.S.

The federal government needs to take the situation at our border seriously. We need a Team Canada approach and response—and we need it now. Prime Minister Trudeau must call an urgent…

— Doug Ford (@fordnation) November 26, 2024