America will have to pay the price… Trudeau threatens Trump over tariff threat.

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Prime Minister Justin Trudeau warned on the threat of tariff on Canada by the new US President Donald Trump. He said that if Donald Trump goes ahead with his plan to impose tariffs, then Canada will give a strong response. He said that Ottawa is ready to cause 'economic damage' to America to push Trump back. PM Trudeau warned President Trump that Canada will take very fast and strong retaliatory action. Let us tell you that Trump has announced that his administration is planning to impose a 25 percent tariff on imports from Mexico and Canada from February 1.

Donald Trump said that we are thinking of imposing a 25 percent tariff on Mexico and Canada because they are allowing a large number of people to come. When asked about the deadline, he said that I think we will do it on February 1.

Ready to give America economic pain

Speaking at a special cabinet meeting in Montebello, Quebec on Tuesday, Trudeau said he was unfazed by Trump's move. He said he expects a lot of uncertainty when working with this president. Trudeau further said he is ready to inflict economic pain on the US to push Trump away. Trudeau said Canada's main goal is to avoid the proposed US tariffs and develop a very positive relationship with it. He said Canada will not bow down to Trump's threats.

Preparations to implement 25 percent tariff

Despite Trump's statement that he doesn't need anything from Canada, Trudeau said if he really wants to use it to usher in America's golden age with a booming economy, he would need Canada's natural resources such as oil, lumber, steel, aluminium and critical minerals to do so. Trudeau said that would give Canada some leverage. After his swearing-in on Monday, Trump refrained from issuing an executive order to impose tariffs on Canada, but later suggested he wanted to impose a 25 per cent tariff in two weeks' time.

Trump has previously threatened to impose tariffs

After that, he signed a new 'America First' trade policy that directs officials to study illegal migration and fentanyl flows from Canada and other countries and report on potential trade actions by April 1, calling that policy an emergency. Trump also threatened tariffs in the final days of the 2024 presidential campaign.

25% discount on imports

According to media reports, a 25 per cent discount will be imposed on all imports from Mexico, which is the US's top trading partner, until the Mexican government reduces the flow of migrants across the southern border. He also threatened to impose tariffs on imports from Canada and China. He has indicated that he intends to double down on the use of tariffs. He claims this will benefit the US economically, while experts warn it would be tantamount to a tax on consumers. Also on January 9, Trump highlighted how tariffs would eventually be imposed on Canada and pointed out the huge losses the US faces from Canada.