Canada and Mexico have announced their own 25% tariffs on American goods after U.S. President Donald Trump imposed tariffs on their products.
According to "European Truth," reported by ABC News.
White House representatives announced that President Donald Trump has imposed a 25% tariff on goods from Mexico and Canada, as well as a 10% tariff on goods from China.
According to a White House spokesperson, the tariffs will take effect on February 4 through three separate executive orders signed for each country.
Such large-scale tariffs are likely to raise prices for American consumers, as importers typically pass on a portion of the costs associated with these higher taxes to consumers.
Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum responded to the imposed tariffs on Saturday evening.
Trudeau stated that Canada will impose a 25% tariff on American goods worth $155 billion.
"This includes immediate tariffs on goods valued at $30 billion, which will take effect on Tuesday, followed by additional tariffs on American goods worth $125 billion to be implemented within 21 days," the Prime Minister said.
Trudeau urged Canadians to read labels in grocery stores and prefer "Canadian whiskey over bourbon from Kentucky," to avoid orange juice from Florida, and to "change summer vacation plans" to visit destinations within Canada.
Sheinbaum stated that she has instructed her government officials to implement Plan B, "which includes tariff and non-tariff measures to protect Mexico's interests."
The tariffs imposed by the White House could lead to price increases on a wide range of products—from avocados and tequila to auto parts.
However, the impact on prices remains unclear, as companies in the supply chain may choose to absorb part or all of the tariff burden, some experts added.
Trump had previously claimed that his administration would introduce 25% tariffs on imports from Mexico and Canada, starting February 1, which is tomorrow.
Canadian Prime Minister Justin Trudeau stated that Ottawa is prepared to respond to the tariffs but warned that the country faces "tough times".