White House Claims Canada ‘Misunderstood’ Tariffs; Mexico Takes Them ‘Seriously’
The White House stated on Monday that Mexico is taking U.S. tariffs seriously, while Canada has misunderstood the measure as a trade war. The comment comes in response to President Donald Trump’s recent executive order imposing tariffs on Mexico, Canada, and China.
Background on the Tariffs
On Saturday, February 1, 2025, President Trump introduced 25% tariffs on goods from Canada and Mexico and an additional 10% on Chinese goods. The executive order aims to curb the influx of fentanyl and illegal immigrants into the United States. Trump argued that these tariffs would counteract unfair trade practices and reduce the flow of harmful substances.
Kevin Hassett, Director of the White House’s National Economic Council, addressed the situation on CNBC, noting that Mexico appears committed to following the executive order. However, he claimed that Canada has misunderstood the tariffs, interpreting them as a declaration of trade war.
Canada and Mexico’s Response
When asked about lifting the tariffs, Trump emphasized the need for Canada and Mexico to balance trade with the U.S. He also called for stopping the movement of illegal immigrants and fentanyl into the country. “They have to balance out their trade,” Trump remarked, stressing that these measures aim to protect American interests.
In response, Canadian Prime Minister Justin Trudeau initiated retaliatory tariffs against U.S. products, including a 25% levy on American-made goods such as alcohol and fruit. Trudeau has also indicated plans to challenge the U.S. tariffs through legal channels.
Impact on U.S. Relations with Europe
Trump warned that the European Union (EU) could be next in facing similar tariffs. He criticized the EU for its trade practices, claiming that it restricts American exports while benefiting from the U.S. market.
EU foreign policy chief Kaja Kallas expressed concerns that a trade conflict between the U.S. and Europe could strengthen China’s global position. “If the U.S. and Europe start a trade war, then China will benefit,” she said at a meeting in Brussels.
Economic Implications and Reactions
The tariffs are raising fears of inflation and global economic slowdown. Trump acknowledged the possibility of short-term economic pain for Americans but insisted the long-term benefits outweigh the costs. “The United States has been exploited by almost every country,” he stated, defending the need for tariffs.
European leaders, including German opposition leader Friedrich Merz and French central bank governor François Villeroy de Galhau, criticized the tariffs. Merz warned that American consumers would bear the cost of the tariffs, while Villeroy de Galhau described the measures as “brutal” and damaging to industries like automobile manufacturing.
Ongoing Diplomatic Efforts
Trump and Trudeau are expected to discuss the tariffs in the coming days. The Canadian government remains firm in its stance, insisting on defending national interests.
Meanwhile, European leaders continue to express concerns about the broader implications of the U.S. tariffs, urging diplomatic solutions to avoid an escalating trade conflict.
As tensions rise, the economic and diplomatic fallout from these tariffs could have lasting impacts on global trade relationships. The evolving situation will likely shape future discussions on trade policies and international cooperation.
More…
- https://www.reuters.com/world/us/trump-says-americans-may-feel-pain-trade-war-with-mexico-canada-china-2025-02-03
- https://www.msn.com/en-gb/news/world/white-house-mexico-is-serious-canada-appears-to-have-misunderstood-trump-s-executive-order/ar-AA1ykzZI
- https://denvergazette.com/news/nation-world/white-house-says-canada-has-misunderstood-tariff-order-as-a-trade-war-mexico-is-serious/article_3e780ba8-03b5-5d54-82e2-3dc7082c7ad0.html
