Trudeau and Ebrard to Discuss Trump's Tariffs: Recession Looms
1min read Canada's Prime Minister Justin Trudeau and Mexico's Foreign Minister Marcelo Ebrard will meet on Saturday evening to discuss U.S. President Donald Trump's proposed tariffs on their respective countries. The meeting comes as both nations brace for potential economic fallout from the U.S. tariffs, which could significantly impact their exports to the U.S.
Economists at Capital Economics have warned that the tariffs could plunge both Canada and Mexico into recession later this year, as exports to the U.S. account for around 20% of their GDP. The U.S. has announced a 25% tariff on Canadian and Mexican imports, with the tariff set to take effect on February 4th. The White House has also stated that it may increase tariff rates if retaliatory tariffs are imposed on U.S. tariffs.
In response to the U.S. tariffs, Mexican officials have called for the enforcement of retaliatory tariffs on U.S. goods. Meanwhile, Canadian officials have confirmed that they will proceed with their retaliatory tariff plan against the U.S., despite a warning clause in an executive order that suggests broader or higher tariffs by the U.S. in response to retaliation.
The upcoming meeting between Trudeau and Ebrard is expected to focus on coordinating a joint response to the U.S. tariffs and minimizing the economic impact on both countries. The meeting comes as both nations continue to engage in negotiations with the U.S. over the North American Free Trade Agreement (NAFTA) and its proposed successor, the United States-Mexico-Canada Agreement (USMCA).
