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Trudeau hits back at Trump by announcing massive tariffs on the United States: ‘Canada will not let this unjustified decision go unanswered’ (www.mediaite.com)

submitted 17 hours ago* (last edited 17 hours ago) by [email protected] to c/[email protected]

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Summary

Canadian Prime Minister Justin Trudeau announced retaliatory tariffs after Donald Trump confirmed 25% tariffs on Canadian goods and 10% on energy, set to take effect at 12:01 a.m. Tuesday.

Trump justified the move by linking it to fentanyl smuggling concerns.

Trudeau called the tariffs "unjustified" and imposed 25% tariffs on $155 billion in U.S. goods, with $30 billion effective immediately and the rest in 21 days.

He warned of price hikes and job losses in the U.S., arguing the move violates Trump’s own trade agreement from his last term.

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[–] [email protected] 4 points 5 hours ago* (last edited 5 hours ago)

Do tarrifs really just make things more expensive for the home country? How do they effect the country the tarrifs are imposed on?

It makes it harder for that country to sell. Which means layoffs and loss of asset value there. The most dramatic example is the auto industry. They're talking about just closing shop immediately, because their business plan depends on moving things back and forth across the border as they gradually get assembled.

If this goes on as long as I suspect, there will be new businesses that bubble up to use the same resources, but it's never going to be as nice as a single integrated continent, and in the meanwhile, time is money, things can't grow and develop while just sitting there. Not to mention the workers that now don't know how to put food on the table.

Genuine question, if Trump’s tariffs just make things expensive for Americans why would we put retaliatory tariffs that effect us?

That's actually a separate question. It's a matter of tit-for-tat, partly. But, there's also the fact that the US government is pocketing all those tariffs. If we didn't have a bit of extra income to match, I imagine it'd get really hard for the government to pay for things with our now weaker currency. Not retaliating was considered, though.