Summary
Trump signed an executive order imposing 25% tariffs on Canadian and Mexican imports—excluding Canadian energy at 10%—plus additional duties on Chinese products.
In response, Prime Minister Justin Trudeau announced a 25% duty on $155 billion in U.S. goods, beginning with $30 billion in tariffs Tuesday.
Mexican President Claudia Sheinbaum indicated reciprocal tariffs, rejecting claims that Mexico tolerates criminal groups trafficking fentanyl and insisting on respect for sovereignty.
Experts warn these tit-for-tat measures could drive up costs, disrupt supply chains, and mirror the previous U.S.-China trade war, possibly harming security.
Living through Brexit, I get all this.
It all only holds if there are alternative suppliers that are cheaper than the new escalated price for the goods you placed tariffs on. Canada and the US have the (mis)fortune to have extremely easy transportation of goods between them, but expensive transportation of good to/from anywhere else. That’s the geography and there’s no getting away from it, just like the UK can’t float away from Europe. America isn’t going to stop importing (to imagine a bullshit example) lumber from Canada because shipping it from anywhere else is impractical and domestic supply won’t be able to deal with the shortfall. Similar for Canada.
Both sides are engaging in massive acts of self harm, and Canada trying to go punch for punch isn’t a winning strategy. Canada has to respond in a smarter way than a reflexive mirroring move.
I’m all ears