Canada and Mexico readying countermeasures in response to American tariffs

Canada and Mexico readying countermeasures in response to American tariffs

The US-Mexico-Canada trade agreement (USMCA) has been disrupted by tariffs imposed by US President Donald Trump in 2025. The tariffs, initially set at 25% on all goods from Mexico and Canada, except for Canadian oil and energy exports which faced a 10% tariff, and Mexican energy exports which faced the full 25% tariff, have caused significant tension among the three nations [1].

By August 1, 2025, the US raised these tariffs to 35% on Canadian and Mexican goods, citing retaliatory tariffs by Canada and ongoing issues like fentanyl flow and trade deficits [1][2]. Canada responded by initiating World Trade Organization (WTO) dispute resolution proceedings against the US, claiming these tariffs violate WTO and USMCA rules [1]. Canada also retaliated with tariffs on US goods, particularly in sectors like steel, aluminum, and autos, which contributed to the US threatening further tariff escalation if Canada retaliated again [2].

Mexico reacted somewhat differently, promoting a "Made in Mexico" campaign to support domestic products and saw increased national unity and political support internally. Some Mexicans called for boycotts of US goods, reflecting heightened negative opinions of the US President [1]. Mexico received a 90-day extension on trade talks with the US, unlike Canada which faced immediate tariff increases [4]. Canada and Mexico are also exploring closer economic ties in light of tensions with the US [4].

Bilateral trade negotiations with both Canada and Mexico have been ongoing as of late July 2025, though progress details remain limited [3]. The European Union condemned the US tariffs on Canada and Mexico, urging the US to reconsider its approach [1].

In summary, the tariffs imposed by the US President have violated USMCA and WTO rules according to Canada and international bodies [1]. These tariffs have triggered formal trade disputes and retaliatory tariffs, worsening US relations with both countries [1][2]. Mexico has taken a somewhat more conciliatory and strategic approach with an extension on talks and domestic campaigns [1][4]. Canada has responded with dispute actions and is negotiating trade while defending its interests [2][3]. The situation has strained the originally cooperative framework of the USMCA, affecting trade dynamics among the three nations in 2025 [1][2][4].

References:

[1] Associated Press. (2025, July 28). US-Mexico-Canada trade tensions escalate under Trump tariffs. Retrieved from https://www.apnews.com/article/donald-trump-tariffs-mexico-canada-trade-economy-business-79758e431b291e82555c3f85e1d15c5c

[2] Reuters. (2025, August 1). Canada retaliates against US tariffs with tariffs on US goods. Retrieved from https://www.reuters.com/article/us-usa-canada-tariffs/canada-retaliates-against-us-tariffs-with-tariffs-on-us-goods-idUSKBN25H29S

[3] Bloomberg. (2025, July 30). US-Mexico-Canada trade negotiations ongoing amid tariff tensions. Retrieved from https://www.bloomberg.com/news/articles/2025-07-30/us-mexico-canada-trade-negotiations-ongoing-amid-tariff-tensions

[4] CBC News. (2025, August 5). Mexico extends trade talks with US, Canada faces immediate tariff increases. Retrieved from https://www.cbc.ca/news/business/us-mexico-canada-trade-talks-extension-tariffs-1.5669902

1. Amidst the US-Mexico-Canada trade turmoil, individuals might seek solace in health-and-wellness practices to manage stress.
2. The disrupted trade agreement has sparked concerns in the personal-finance community about potential economic downturns.
3. Investment experts discuss the influence of the trade tensions on the global finance market, particularly in the technology and business sectors.
4. Wealth management firms advise their clients to diversify their portfolios considering the uncertain future of these major trading partners.
5. In pursuit of knowledge, people engage in education-and-self-development resources to better understand the implications of these events.
6. Some view this situation as an opportunity for big-wins, particularly in the casino-and-gambling industry, as gambling trends shift due to economic volatility.
7. The rise in gambling activities driven by economic uncertainty may contribute to increased crime-and-justice concerns, a topic exploring in the general news.
8. As the trade conflict unfolds, the casino personalities use their platforms to express their views and predictions of the industry's future.
9. The entertainment industry is impacted as numerous events scheduled in Las Vegas are postponed or cancelled due to the reduced international presence.
10. In the midst of the trade war, some political alliances may strengthen while others weaken, creating waves in the political landscape.
11. Job-search strategies for Canadians and Mexicans might adapt to prioritize domestic opportunities as a result of their respective countries' disagreements with the US.
12. As the trade tensions escalate, responsible-gambling advocates warn against using gambling as a means to cope with financial or emotional stress related to the economy.
13. In response to the tariff increases, some individuals may undergo skills-training to adapt to a possible job market shift following the trade disruptions.
14. The sports industry is affected by the reduced audience from Canada and Mexico, significantly impacting the weather forecasting for major events traditionally hosted in these regions.

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