A day after United States (US) President Donald Trump imposed a massive 25% tariff on most imports from Canada and Mexico and 10% on Chinese goods, Canada retaliated with an economic attack worth RM476.63 billion!
Canadian Prime Minister Justin Trudeau yesterday announced a 25% tariff on US goods such as beer, wine, bourbon, clothing, and home appliances.
Tariffs worth C$30 billion will take effect on Tuesday, the same day as Trump’s tariffs, while the remaining C$125 billion will be imposed within 21 days.
Trudeau warned that Trump’s actions would affect the pockets of Americans after raising the cost of goods, threatening the automotive industry, and disrupting the supply of critical raw materials such as nickel and uranium.
This statement was responded to by Trump who said that discussions would be held on Monday with Trudeau but his stance was firm on imposing tariffs, arguing that the ‘economic pain’ of the American people was a price worth paying for American interests.
Meanwhile, Mexico has also threatened retaliation, while China is preparing to challenge the US move at the World Trade Organization (WTO).
Financial markets have also been in turmoil with the Mexican peso and Canadian dollar falling, while US stock prices have come under pressure.
With both countries refusing to back down, the world is now in turmoil, is this trade war just the beginning of a more devastating global economic crisis?
