US President Donald Trump said he would proceed with planned tariffs on Canada, Mexico and China, causing a broad sell-off in US stock markets.
Canadian Prime Minister Justin Trudeau slammed tariffs announced by US President Donald Trump - describing them as a "very dumb thing to do."
“Today the United States launched a trade war against Canada, their closest partner and ally, their closest friend. At the same, they are talking about working positively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Make that make sense,” Trudeau said.
"Now, it's not in my habit to agree with the Wall Street Journal, but Donald, they point out that even though you're a smart guy, this is a very dumb thing to do. We two friends fighting is exactly what our opponents around the world to see."
Trudeau's comments come after Trump launched a trade war against America's three biggest trading partners in Canada, China and Mexico. Canada and Mexico face 25% tariffs on their goods, while China will be levied 20% on imports.
The move sparked immediate retaliation and sent global stock markets into a tailspin as the US faces inflation and financial uncertainty for business.
Trudeau announced that his nation would impose 25% tariffs on C$155 billion (€102.1 billion) worth of US goods, with tariffs on C$30 billion (€19.8 billion) of imports coming into effect on Tuesday and the remainder in 21 days.
“Our tariffs will remain in place until the US trade action is withdrawn, and should US tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” Trudeau said in a statement.
In a post on social media app Truth Social, Trump warned that "when (Trudeau) puts on a retaliatory tariff on the US, our reciprocal tariff will immediately increase by a like amount."
Mexican President Claudia Sheinbaum said her nation would respond to the new taxes with its own retaliatory tariffs. Sheinbaum said she will announce the products Mexico will target on Sunday in a public event in Mexico City's central plaza, with the delay potentially signalling hopes to de-escalate the trade war set off by Trump.
China signalled it would impose additional tariffs of up to 15% on imports of key US farm products, including chicken, pork, soy and beef, and would further restrict business with US companies.
Beijing is "strongly dissatisfied" with US tariffs, the Chinese Ministry of Commerce said in a statement, warning it would "take countermeasures to safeguards its rights and interests."
As he promised voters, the US president is abandoning the free trade policies the United States pursued for decades after World War II. Trump argues that open trade cost America millions of factory jobs and that tariffs are the path to national prosperity. He rejects mainstream economists who contend that such protectionism is costly and inefficient.
Import taxes are “a very powerful weapon that politicians haven’t used because they were either dishonest, stupid or paid off in some other form,” Trump said Monday at the White House. “And now we’re using them.”
AP