Trump’s Inflationary Trade War With Canada and Mexico Begins

Trump’s 25% tariff on Canada and the US has officially begun. Canada and Mexico have announced that they will retaliate.

Get ready to pay more for everything. American fascist dictator, Donald Trump, has carried out his inflationary trade war with Canada and Mexico. On the eve of Trump initiating the 25% tariff on Canada and Mexico, Canadian and provincial policymakers vowed to retaliate. It was an understandable response because the alternative is to roll over and take it. Additionally, it’s what actually worked last time.

This time, however, it appears that vowing to respond in kind to this completely illegal and unnecessary tariffs wasn’t enough to dissuade Trump from being a complete and total dumbass. The moron in chief has enacted those inflationary tariffs. From Al Jazeera:

United States President Donald Trump’s new 25 percent tariffs on imports from Mexico and Canada have taken effect, along with a doubling of duties on Chinese goods to 20 percent, launching new trade conflicts with the top three US trading partners.

The tariff actions, which could upend nearly $2.2 trillion in two-way annual US trade, went live at 00:01 EST (05:01 GMT) on Tuesday, hours after Trump declared that all three countries had failed to do enough to stem the flow of the deadly opioid fentanyl and its precursor chemicals into the US.

Canadian Prime Minister, Justin Trudeau, issued a statement last night saying that if the Trump regime were to follow through with this, Canada would respond in kind. Here’s the Prime Minister’s statement:

“Today, after a 30-day pause, the United States administration has decided to proceed with imposing 25 per cent tariffs on Canadian exports and 10 per cent tariffs on Canadian energy. Let me be unequivocally clear – there is no justification for these actions.

“While less than 1 per cent of the fentanyl intercepted at the U.S. border comes from Canada, we have worked relentlessly to address this scourge that affects Canadians and Americans alike. We implemented a $1.3 billion border plan with new choppers, boots on the ground, more co-ordination, and increased resources to stop the flow of fentanyl. We appointed a Fentanyl Czar, listed transnational criminal cartels as terrorist organizations, launched the Joint Operational Intelligence Cell, and are establishing a Canada-U.S. Joint Strike Force on organized crime. Because of this work – in partnership with the United States – fentanyl seizures from Canada have dropped 97 per cent between December 2024 and January 2025 to a near-zero low of 0.03 pounds seized by U.S. Customs and Border Protection.

“Canada will not let this unjustified decision go unanswered. Should American tariffs come into effect tonight, Canada will, effective 12:01 a.m. EST tomorrow, respond with 25 per cent tariffs against $155 billion of American goods – starting with tariffs on $30 billion worth of goods immediately, and tariffs on the remaining $125 billion on American products in 21 days’ time. Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures. While we urge the U.S. administration to reconsider their tariffs, Canada remains firm in standing up for our economy, our jobs, our workers, and for a fair deal.

“Because of the tariffs imposed by the U.S., Americans will pay more for groceries, gas, and cars, and potentially lose thousands of jobs. Tariffs will disrupt an incredibly successful trading relationship. They will violate the very trade agreement that was negotiated by President Trump in his last term.”

Today, Trudeau further issued comments explaining what we’ve also known all along. The tariffs were designed to erase Canada and that is the intended outcome. From the CBC:

An unbowed Prime Minister Justin Trudeau said Tuesday that Canada will hit back hard at the U.S. after President Donald Trump launched a North American trade war by slapping devastating 25 per cent tariffs on virtually all Canadian goods.

Speaking to reporters at a news conference on Parliament Hill, Trudeau said Trump is trying to prompt “a total collapse of the Canadian economy” because he thinks that will “make it easier to annex us,” something the U.S. president has repeatedly said he wants to do.

But Trudeau said that will never happen because “when it comes to defending our great nation, there is no price we all aren’t willing to pay.”

Trudeau said Canada will not back down from a fight in the face of “completely bogus and completely unjustified” trade action that has the potential to ruin bilateral relations and prompt job losses, economic devastation and higher inflation on both sides of the border.

Trudeau has already slapped tariffs on an initial tranche of $30 billion worth of American goods and promised $125 billion more will face levies in three weeks’ time. He said more, non-tariff measures are coming if Trump doesn’t immediately back down.

Trudeau said Trump is doing something “very dumb” by attacking Canada like this, given there will be serious ramifications for American workers and consumers with higher prices on everything from food, car parts and fertilizers to pharmaceuticals and paper products.

Ontario Premier, Doug Ford, also responded by removing American alcohol from the shelves and cancelled the Elon Musk Starlink deal. From global News:

Alcohol from the United States has been wiped from the shelves of the LCBO, a contract between Ontario and Elon Musk‘s Starlink internet provider has been ripped up and American companies will be banned from bidding on public contracts as the Ford government slaps back against tariffs.

BC Premier, David Eby, also said that American red state alcohol is being removed from store shelves and discouraging people from travelling to the US. From the CBC:

As U.S. tariffs on Canadian goods go into effect, B.C. is following through on retaliatory measures it promised last month that aim to hurt Americans’ wallets.

At midnight, the U.S. president slapped 25 per cent duties on most Canadian products. And while Canada’s leaders are warning residents what this could mean for Canadians, they’re also sending a message to Americans: this will cost them, too.

“Everything from the cost of pasta, to the cost of a home or a car, or to turn on the lights or to fill up a tank of gas, is going to go up in a way that is noticeable and significant for American families,” Premier David Eby said during a news conference Tuesday morning.

“For Americans who work in manufacturing, the factories that you work in, the inputs that you use to make the things that are sold around the world have just become significantly less competitive. Your jobs will be taken by people living in countries other than the United States that have access to the raw materials that Canada provides, without tariffs.”

Eby announced Tuesday that B.C. liquor stores are pulling all ‘red state’ products — as in liquor produced in states run by Republican leaders.

“We understand who is attacking us. We understand where this is coming from. We want to send a message particularly to those governors, to those congresspeople,” Eby said.

Canadian businesses and stakeholders will be prioritized for any provincial government procurement, Eby said, adding that past trade agreements meant Canada had to view U.S. products as equal to our own.

“Obviously all bets are off.”

Mexico, for their part, have also vowed to retaliate. From Reuters:

Mexican President Claudia Sheinbaum on Tuesday condemned U.S. President Donald Trump’s 25% tariffs on imports from Mexico and said her government would respond with its own measures, without immediately providing details.

Mexico and the United States are each other’s top trading partners, with key industries such as the automotive sector benefiting from the cross-border movement of goods facilitated by their trilateral trade deal which also includes Canada.
“There is no reason, rationale or justification to support this decision that will affect our people and nations … Nobody wins,” Sheinbaum told a press conference.
She said she would give details on Mexico’s response, including retaliatory tariffs, at an event in the capital’s iconic Zocalo square on Sunday.

China, also hit with these tariffs have announced that they, too, would issue retaliatory tariffs in response. From Global News:

China announced Tuesday it will impose additional tariffs of up to 15 per cent on imports of key U.S. farm products, including chicken, pork, soy and beef, and also expanded controls on doing business with key U.S. companies.

The tariffs announced by the Commerce Ministry are due to take effect from March 10, though goods already in transit will be exempt until April 12. They follow U.S. President Donald Trump’s order to raise tariffs on imports of Chinese products to 20 per cent across the board. Those took effect on Tuesday, along with 25 per cent tariffs on imports from Canada and Mexico.

Imports of U.S. grown chicken, wheat, corn and cotton will face an extra 15 per cent tariff, a notice by the ministry said. Tariffs on sorghum, soybeans, pork, beef, seafoods, fruit, vegetables and dairy products will be increased by 10%.

Also Tuesday, Beijing placed 10 more U.S. firms on its unreliable entity list, which would bar them from engaging in China-related import or export activities and from making new investments in the country. Some already likely face restrictions on trade with China if their products can be used for both military and civilian purposes.

Reacting to the tariff insanity, stock markets have been crashing. Yesterday, the DOW Jones industrial average collapsed by more than 600 points. From CNBC:

The S&P 500 retreated on Monday, extending February’s rout and turning red for the year after President Donald Trump’s confirmation of forthcoming tariffs.

The broad index fell 1.76% to end at 5,849.72, marking its worst day since December and bringing its year-to-date performance to a loss of about 0.5%. The Dow Jones Industrial Average
dropped 649.67 points, or 1.48%, to finish at 43,191.24. The Nasdaq Composite slid 2.64% to close at 18,350.19, weighed down by Nvidia’s decline of more than 8%.

Stocks took a notable leg down in afternoon trading following President Trump’s reiteration that 25% levies on imports from Mexico and Canada would go into effect on Tuesday, dashing investors’ hopes of a last-minute deal to avert the full tariffs on the two U.S. allies. All three indexes traded in positive territory earlier in the day, with the Dow rising nearly 200 points at session highs.

About 2 hours before the end of trading today, both the TSX and DOW Jones indexes were down an additional 200 points as realization starts setting in that America is in the beginning phases of a complete and total economic collapse combined with runaway hyper inflation on the horizon.

If that weren’t bad enough, Trump was taken by surprise that other countries wouldn’t just sit around and take the tariffs. This in violation of the unwritten rule (for Trump) of “no backsies”. In response, Trump announced that he would be hitting Canada, with additional “retaliatory” tariffs. From CTV:

U.S. President Donald Trump has unleashed tariffs against Canada today, setting in motion a trade war between two countries with deeply linked economies, jeopardizing jobs and likely raising consumer prices on both sides of the border.

Latest developments:

• The president’s executive order hit Canada and Mexico with 25 per cent across-the-board tariffs, with a lower 10 per cent levy on Canadian energy
• The tariffs took effect at 12:01 a.m. EST.
• Prime Minister Justin Trudeau issued a warning to the global community, saying “if the American government is willing to do this to their own closest neighbour, ally and friend, everyone is vulnerable to a trade war.”
• Trump vowed to match any retaliatory tariffs Trudeau puts in place

So, it seems that the situation is only going to get worse thanks to Trump continuing to be an out of control maniac hell bent on destroying America. So, the stupid insanity is only going to continue from here it seems.

Drew Wilson on Mastodon, Twitter and Facebook.