US President Donald Trump has warned of escalating trade tensions with Canada following Prime Minister Justin Trudeau's announcement of retaliatory tariffs on American goods.

Trump's 25% tariffs on imports from Mexico and Canada, which came into effect on Tuesday, led Trudeau to impose tariffs on over $100 billion worth of US goods. These tariffs will take effect in 21 days.

In response, Trump took to his social media platform, Truth Social, to state: “Please explain to Governor Trudeau of Canada that when he imposes a retaliatory tariff on the US, our reciprocal tariff will immediately increase by the same amount!” 

In recent weeks, Trump has referred to Trudeau as the “governor” of Canada, reiterating his calls for Canada to join the US as its 51st state.

Trudeau hit back during a press conference in Ottawa, calling Trump’s trade war "dumb" and suggesting it was part of a strategy to cause economic collapse in Canada to make it easier for the US to annex the country. 

“That’s never going to happen,” Trudeau asserted, adding, "While Trump may harm the Canadian economy, he’ll soon learn that it will hurt both sides of the border."

Vina Nadjibulla, VP of research at the Asia Pacific Foundation of Canada, warned that the trade war would negatively impact both Canadian and US consumers and businesses within weeks.

In retaliation, Canada announced plans to challenge the US tariffs at the World Trade Organization and under the US-Mexico-Canada agreement. Trudeau emphasized that while Canadians are polite, they will not back down from this fight. 

Additionally, Ontario Premier Doug Ford hinted at imposing a 25% export tax on electricity sold to the US and potentially halting it entirely if the tariffs continue.

Source: Al Jazeera 

BDST: 0925 HRS, MAR 05, 2025
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