How will Canada and Mexico retaliate against US tariffs?

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Canada and Mexico Announce Retaliatory Tariff Measures Against US Tariffs

Canada and Mexico have both announced plans to implement retaliatory tariffs against goods imported from the United States in response to sweeping tariffs imposed by the US. Canadian Prime Minister Justin Trudeau detailed plans for retaliatory measures, with the first set of tariffs scheduled to take effect imminently. Mexico's President Claudia Sheinbaum indicated that details of her country's response would be disclosed shortly.
Canada's Tariff Response

Canada intends to impose 25 per cent tariffs on US$155 billion worth of US goods. This response will be phased, with an initial US$30 billion in tariffs commencing immediately, followed by the remaining US$125 billion taking effect 21 days later. This retaliatory action aims to counter the impact of the US tariffs on Canadian trade.
Mexico's Planned Retaliation

Mexico's President Claudia Sheinbaum stated on the social media platform X that the specifics of Mexico's retaliatory measures would be outlined soon. While the exact details of the goods Mexico will target are not yet public, the country is preparing its own set of counter-tariffs. The US has imposed a 25 per cent tariff on Mexican imports as part of its broader trade action.
Potential Impact and US Provisions

The US executive order enacting these tariffs includes a provision allowing President Trump to escalate the size and scope of the tariffs if affected countries pursue retaliatory actions. This mechanism suggests a potential for further trade friction. Analysts have projected significant impacts on currencies such as the Canadian dollar and the Mexican peso, with some estimates suggesting a substantial fall for the Mexican peso if tariffs are imposed. Economists have also forecast potential increases in core inflation and a hit to gross domestic product in the US due to these measures.

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How will Canada and Mexico retaliate against US tariffs?

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