Trudeau decided to go ahead with retaliatory tariffs even though Trump’s order includes a mechanism to escalate the rates if Canada retaliates against the U.S.
Trump is putting tariffs on things Americans buy from overseas that he believes should be made in America. The gamble is that companies that makes those products will choose to open factories/production in the US in response to the tariffs, which will create new jobs and growth in the country.
In comparison, retaliatory tariffs suggested by Trudeau and Sheinbaum are going to impact high demand goods that Americans import that would be very difficult to source in the US (or elsewhere in the world) in the short term. There is unlikely to be significant impact to the Canadian or Mexican economies because Americans must purchase those items and absorb the extra costs.
An example is cars, which can move back and forth across the border many times during assembly. Car manufacturers must simply absorb those extra costs due to the tariffs now.
Trump is putting tariffs on things Americans buy from overseas that he believes should be made in America. The gamble is that companies that makes those products will choose to open factories/production in the US in response to the tariffs, which will create new jobs and growth in the country.
In comparison, retaliatory tariffs suggested by Trudeau and Sheinbaum are going to impact high demand goods that Americans import that would be very difficult to source in the US (or elsewhere in the world) in the short term. There is unlikely to be significant impact to the Canadian or Mexican economies because Americans must purchase those items and absorb the extra costs.
An example is cars, which can move back and forth across the border many times during assembly. Car manufacturers must simply absorb those extra costs due to the tariffs now.