The Challenges of Trump's Talk with Canada, Mexico Leaders Over Tariffs

The Challenges of Trump's Talk with Canada, Mexico Leaders Over Tariffs

WASHINGTON, D.C. — United States President Donald Trump said he would discuss the punishing tariffs he has levied on Canada and Mexico with both countries on Monday, after arguing that Americans may feel economic pain from the 25-percent duties but that it will be worth the price.

Speaking to reporters after he flew back to Washington on Sunday evening from a weekend in Florida, Trump said he would be speaking with [Canadian] Prime Minister [Justin] Trudeau tomorrow morning, and I'm also speaking with Mexico tomorrow morning.

I don't expect anything very dramatic, he added.

Trump has also hit China with a 10-percent tariff in addition to levies already in place.

A fervent supporter of tariffs, Trump had always maintained that their impact would be borne by foreign exporters, without being passed on to American consumers, contradicting the opinion of a broad range of experts.

Earlier on Sunday, he acknowledged in a series of messages on his Truth Social network that Americans may feel economic pain from his tariffs, but argued it would be worth the price to secure US interests.

China, Mexico, and Canada are the top three US trade partners, and all have vowed to retaliate when the tariffs take effect on Tuesday.

Will there be some pain? Yes, maybe (and maybe not!) Trump wrote in all-caps on his Truth Social media platform on Sunday morning. But we will Make America Great Again, and it will all be worth the price that must be paid.

Analysts expect the trade war to slow US growth and increase prices, at least in the short term — something the president had resisted acknowledging after frustration over rising costs was seen as a major factor in his 2024 election win.

Seeking to limit a spike in fuel prices, Trump has put the levy on energy imports from Canada at only 10 percent.

The president has cited illegal immigration and the trafficking of the deadly opioid fentanyl as reasons for the emergency measures.

But on Sunday, he also expressed general outrage at trade deficits, which he has long viewed as signs of unfair treatment against the US.

The USA has major deficits with Canada, Mexico, and China (and almost all countries!), owes 36 Trillion Dollars, and we're not going to be the 'Stupid Country' any longer, he wrote.

'51st state'

In a separate social media post, Trump took particular aim at Canada, repeating his call for America's northern neighbor to become a US state.

Claiming the US pays hundreds of billions of dollars to SUBSIDIZE Canada, Trump said that without this massive subsidy, Canada ceases to exist as a viable Country.

Therefore, Canada should become our Cherished 51st State, he added, reiterating the expansionist threat against one of his country's closest allies.

The US Census Bureau says the 2024 trade deficit in goods with Canada was $55 billion.

Canadian backlash was swift, with video posted to social media showing fans at a Toronto Raptors game booing during the US national anthem on Sunday.

Trudeau vowed on Saturday to hit back with 25-percent levies on select American goods worth CA$155 billion ($106.6 billion), with a first round on Tuesday followed by a second one in three weeks.

Leaders of several Canadian provinces have already announced retaliatory actions as well, such as the immediate halt of US liquor purchases.

The White House has not publicly announced what actions could end the tariffs.

Federal overhaul

Mexican President Claudia Sheinbaum said she, also, was awaiting Trump's response to her proposal for dialogue.

She said she had directed her economy minister to implement Plan B, which includes unspecified tariff and nontariff measures, promising to detail on Monday the steps she intends to take.

Trump said on Sunday he also planned to hit China with more tariffs, further escalating the ongoing trade war between the two economic superpowers.

In related news, Trump has also been engaged in a trade war with China for over a year. In response to US tariffs on Chinese goods, Beijing has levied retaliatory tariffs on American products such as soybeans and liquefied natural gas. The ongoing dispute has caused uncertainty within global markets.

In another significant development, Trump announced on Sunday that the United States would designate Iranian Revolutionary Guard Corps (IRGC) a foreign terrorist organization. This decision marks the first time the US government has officially labeled part of another country's military in this manner. The move is expected to escalate tensions between Washington and Tehran.

In closing, we will continue to monitor these developments closely as they unfold over the coming days and weeks. Please stay tuned for updates as they become available.

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.