The Canadian and Mexican governments are preparing for U.S. President Donald Trump's 25% tariffs targeting imports from neighboring nations after he told reporters Monday that the policies will take effect Tuesday after a monthlong delay.
"Very importantly, tomorrow, tariffs—25% on Canada and 25% on Mexico," Trump said, suggesting the damaging policies will make companies "build their car plants, frankly, and other things in the United States, in which case they have no tariffs."
Business leaders, lawmakers, and economists have stressed that the costs of tariffs are passed on to consumers.
Ask whether either government could make a deal before midnight to prevent or further delay the tariffs, Trump responded: "No room left for Mexico or for Canada. No. The tariffs, you know, they're all set, they go into effect tomorrow."
Mexican President Claudia Sheinbaum addressed the looming tariffs during a press conference earlier Monday.
"It's a decision that depends on the United States government, on the United States president," Sheinbaum said, according toThe Associated Press. "So whatever his decision is, we will make our decisions and there is a plan, there is unity in Mexico."
"It's very important that the people know that we have made a very important effort of coordination, of collaboration, but it depends on the United States," the Mexican leader added. "We have to respond to this decision."
Reutersnoted that Sheinbaum signaled multiple responses, saying that "we have a plan B, C, D," without offering details.
Sheinbaum previously negotiated a one-month delay to Trump's tariffs, pushing her approval rating to 80% among respondents to a poll conducted by Buendía & Márquez for El Universal February 13-18, shortly after that deal was reached. Citing the newspaper's polls, Mexico News Dailyreported last week that her rating rose "from 77% in January and 74% in November," and "only 11% of those polled in February said they disapproved of the president's performance, down from 13% in January."
As Mexico News Daily detailed:
The 1,000 respondents to the most recent El Universal poll were also asked to respond to the question: "In your opinion, what is the best thing Claudia Sheinbaum has done so far as president of the republic?"
The top response was "defending the country from Donald Trump," with 14% of those polled saying that was the president's greatest achievement since she took office on October 1.
While Sheinbaum is facing off against Trump during her first year in office, Canadian Prime Minister Justin Trudeau is on his way out. The Liberal leader announced his resignation in January, in response to mounting calls for him to step aside. His party is set to choose its next chief on Sunday, ahead of elections later this year.
CBCreported Monday that Canadian Foreign Affairs Minister Mélanie Joly, a Liberal Party member, previewed retaliatory action:
"We are ready with $155 billion worth of tariffs and we are ready with the first tranche of tariffs, which is $30 billion, which has already been announced," Joly said, referring to countermeasures that were first released when Trump floated his tariff threat last month.
Joly said she will be meeting with her Cabinet colleagues this evening to discuss the country's next steps as it stares down the possibility of economic ruin.
"We know this is an existential threat to us. There are thousands of jobs in Canada at stake. Now, we've done the work, we are ready, should the U.S. decide to launch their trade war," Joly said.
Newly reelected Ontario Premier Doug Ford, leader of the Progressive Conservative Party, discussed Trump's tariffs with reporters on Monday while attending a mining convention in his province's capital, according to the Toronto Sun.
"If they want to try to annihilate Ontario, I will do everything—including cut off their energy with a smile on my face," Ford said. "They rely on our energy, they need to feel the pain. They want to come at us hard, we're going to come back twice as hard."
While Trump's tariffs targeting Canada and Mexico were halted for a month, his administration has imposed tariffs on Chinese imports. The Washington Postreported Monday that "tariffs on China will also increase by an additional 10 percentage points for the second time in two months, bringing the total tax on some Chinese products to 45%."
The newspaper noted that "on Wall Street, the Dow Jones Industrial Average closed down around 1.5%. The broader S&P 500 index fell nearly 2%. Both market measures are now in the red since Trump's election win."
The U.S. president is also planning to impose 25% tariffs on imports from the European Union.
"Mexico, Canada, and Europe have leverage," economist Gabriel Zucman, director of the E.U. Tax Observatory, wrote in a Friday column, arguing that countries affected by Trump's tariffs "should retaliate by taxing U.S. oligarchs."