The leaders of both Canada and Mexico have reacted cautiously to president-elect Trump’s threat to hit both nations with 25% tariffs.
However, leaders from Mexico’s capital and Canada’s major provinces have warned that the tariffs would damage their economies, and urged retaliation.
Initial threat
Yesterday (26 November), Trump announced that he would hit Canada, China and Mexico with tariffs on day one of his presidency, citing illegal migration and illegal drugs crossing the US border as justification.
Mexican president Claudia Sheinbaum responded in an open letter, emphasising the links between the two countries.
Jobs at risk
In a press conference held in Mexico City, the newly-elected, left-wing president emphasised the joint-relationship.
“The principal exporters from Mexico into the US are General Motors, Stellantis and Ford Motors, which have been in Mexico for 80 years,” Sheinbaum said.
“Why impose a tax that would put them at risk? This is not acceptable and would cause inflation and job losses in Mexico and the US.”
She said she was convinced that the “economic strength of North America comes from maintaining a commercial relationship” with Mexico and that dialogue was important for maintaining peace and understanding between the two nations.
Sheinbaum also insisted that migrant crossings from Mexico into the US were down 75% compared to last year, citing her government’s border agency. She added that Mexico’s armed forces were also taking action against the illegal drug trade.
Earlier in November, Mexican economic minister Marcelo Ebrard told Radio Fórmula that, while he was “optimistic” that he could work with Trump, Mexico City might be forced to respond to any major tariff hike with its own tariffs.
Trudeau rallies premiers
Canadian prime minister Justin Trudeau said that he was meeting with provincial leaders to discuss the Canadian response, with a virtual meeting initially slated for this evening (27 November).
"One of the really important things is that we be all pulling together on this. The Team Canada approach is what works,” he told CBC, Canada’s public service broadcaster.
In spite of this, Trudeau said he had a “good call” with Trump after the latter’s tariff announcement.
"We obviously talked about… how the intense and effective connections between our two countries flow back and forth, we talked about some of the challenges we can work on together," he told reporters.
‘Biggest threat’
Provincial leaders were more direct.
At a press conference held yesterday (26 November), the Conservative premier of Ontario, Doug Ford, described it as “the biggest threat” the province had received, as well as an insult to the region.
“There is no choice. We have to retaliate.”
The leader of the opposition in Ontario, New Democrat Party MP Marit Stiles, said the provincial government needed to be “in lockstep” with the Federal administration when Trump comes to office.
Ontario and Quebec combined represent over half of Canada’s total GDP, according to Canada’s statistical agency.
The premier of Quebec, François Legault, said on Twitter/X that US tariffs pose an “enormous risk” to the economy, while his counterpart from British Colombia, David Eby, called for hard negotiations.
“We buy more American stuff than France and China and the UK combined, so we are negotiating, I believe, from a position of strength,” Eby told a labour meeting.
