Canada, Mexico, China Hit Back As Trump’s Tariffs Escalate North American Trade Tensions

China, Canada, and Mexico have announced retaliatory measures against the United States following President Donald Trump's confirmation that his administration would impose extensive tariffs on their exports from Tuesday.

The move has significantly heightened trade tensions across North America.

Canadian Prime Minister Justin Trudeau strongly criticised Trump's decision, calling it "unjustified" and vowing that Canada would respond.

On Monday, Trudeau outlined a package of counter-tariffs, closely following the retaliation plan he initially proposed in February when Trump signed an executive order imposing broad tariffs.

"The first stage will see 25 per cent tariffs imposed on approximately Canadian USD 30 billion (USD 20.6 billion) worth of goods from US exporters. These measures took effect at 12:01 am New York time, unless the US reverses its decision," Bloomberg quoted Trudeau as saying.

In an additional escalation, Trudeau confirmed that a second round of 25 per cent tariffs would be placed on Canadian USD 125 billion worth of American goods in three weeks. The next phase would target key industries such as automobiles, steel, and aluminium.

"Our tariffs will remain in place until the US withdraws its trade action," Trudeau said, adding, "Should US tariffs persist, we are actively discussing additional non-tariff measures with provinces and territories."

Meanwhile, Mexican President Claudia Sheinbaum took a more cautious approach, stating that Mexico would wait to see whether Trump proceeded with the tariffs before fully revealing its response.

Speaking at a press conference on Monday morning, Sheinbaum assured that Mexico had contingency plans in place should the tariffs be enforced.

"We have a plan B, C, D," Sheinbaum said, without providing further details. She reaffirmed Mexico's readiness to counter any trade actions from Washington, according to *Reuters*.

Mexican officials recently met with their US counterparts in Washington in an effort to negotiate trade and security policies and prevent the imposition of tariffs. Sheinbaum described the discussions as "cordial" and noted that cooperation between the two nations had been "very good so far."

Donald Trump, speaking from the Roosevelt Room on Monday, reiterated that the tariffs-set at 25 per cent on imports from both Canada and Mexico-would take effect on Tuesday. He defended the decision as necessary to curb the flow of synthetic drugs like fentanyl into the US and to tackle illegal immigration.

"Tomorrow-tariffs 25 per cent on Canada and 25 per cent on Mexico. And that'll start. They're going to have to have a tariff," Trump declared.

While Trump has primarily justified the tariffs as measures to enforce border security and combat drug trafficking, he has also cited broader economic objectives. The US President has emphasised his aim to eliminate trade imbalances with Canada and Mexico, seeking to bring more manufacturing jobs back to the US.

The announcement sent shockwaves through financial markets, with the S&P 500 index falling by 2 per cent during Monday afternoon trading. Economists have expressed concerns that the tariffs could drive inflation higher and disrupt supply chains, further straining trade relations across North America.