US President Donald Trump speaks with Canadian Prime Minister Justin Trudeau during the opening ceremony of the G-7 Summit in Charlevoix, Canada, 8 June 2018. Photo:Evan Vucci/AP
Canadian Prime Minister Justin Trudeau made an unexpected trip to Florida on Friday for talks with Donald Trump. The reason was Trump’s recent announcement of a 25% tariff on imports from Canada and Mexico, which caused panic among the US neighbours, Bloomberg reports.
Trump threatens tariffs
On Monday, Donald Trump, who is due to return to the White House on 20 January, announced his intention to introduce new tariffs. He stated that this measure will be in place “until drugs, including fentanyl, and illegal immigration stop ‘invading’ our country”.
These words sparked outrage and fear of a large-scale trade war in North America, especially among the US’s largest economic partners, Canada and Mexico.
Trudeau at a meeting with Trump
In an attempt to avoid an economic conflict, Justin Trudeau travelled to Mar-a-Lago, Trump’s private residence in West Palm Beach, to discuss the situation in person. According to a government source, Trudeau met with Trump for dinner. After the meeting, the Prime Minister declined to comment to journalists.
Canada’s response: economic repression
Canada responded quickly to the threat. According to sources, the Ottawa government is already considering imposing additional duties on US goods in response to Trump’s initiative.
More than 75% of Canadian exports (approximately CAD 592 billion) go to the United States, and about 2 million Canadians depend on this trade relationship.
“When Trump makes statements like that, he intends to implement them,” Trudeau said.
Mexico is also under attack
Trump also made tough demands on Mexico. On Wednesday, he spoke with the country’s president, Claudia Sheinbaum, saying that she had agreed to “stop immigration” to the US. However, Sheinbaum denied this, stressing that Mexico does not support border closures.
In response, Mexico is also considering imposing tariffs on US goods, as this decision threatens economic stability in the region.
Biden criticises
US President Joe Biden called Trump’s statements “counterproductive”, stressing the importance of maintaining allied relations with neighbours.
“The last thing we need is to break those ties,” Biden said on Thursday.
Uncertainty for North America
Amid the escalating rhetoric, the issue of a trade war remains open. Canada, Mexico and the US risk losing economic stability if tariffs are imposed, while the political landscape in North America is becoming increasingly tense.
