Trump's Tariffs on Canada and Mexico Trigger Retaliation and WTO Complaint

Following the implementation of U.S. President Donald Trump's tariffs on imports from Canada and Mexico, key members of his administration linked the duties to fentanyl entering the U.S. Commerce Secretary Howard Lutnick called it a "drug war, not a trade war." Trump claimed tariffs would not apply to companies relocating operations to the U.S. and repeated claims about Canadian banking restrictions. Democrat Senate Leader Chuck Schumer said the tariffs would raise costs for Americans, arguing tariffs should target adversaries, not allies. Prime Minister Justin Trudeau announced Canada would impose 25% tariffs on C$30 billion of U.S. imports immediately. He labeled Trump's tariffs a "trade war" and a "very dumb thing to do." Trudeau stated Canada would challenge the U.S. measures at the World Trade Organization and through the USMCA trade agreement. If U.S. tariffs persist, Canada will impose a 25% tariff on a further C$125 billion of U.S. imports in 21 days.