US-Canada trade war threat: Donald Trump speaks to Justin Trudeau, posts about cross-border drug war
US-Canada trade war threat: Donald Trump speaks to Justin Trudeau, posts about cross-border drug war
US President Donald Trump said he spoke to Canadian Prime Minister Justin Trudeau amid the threat of a major trade war impacting the world’s two largest trading partners. In his post on Truth Social, Trump discussed with Trudeau about drug trafficking at the border and said he would speak to him again after 3 pm (ET).
Beginning Tuesday, Trump said on February 1 that the US will impose 25 per cent tariffs on virtually all Canadian imports. In response, Trudeau announced that Ottawa would impose 25 per cent tariffs on USD 106.5 billion of US goods.
Trump, in his Truth Social post, demanded that US banks be allowed to do their business there and flagged the issue of drug trafficking at the border.
“Canada doesn’t even allow US banks to open or do business there. What’s that all about? Many such things, but it’s also a drug war, and hundreds of thousands of people have died in the US from drugs pouring through the borders of Mexico and Canada. Just spoke to Justin Trudeau. Will be speaking to him again at 3 pm,” he said.
The tariffs were announced by Trump after he accused Canada of being a source of illegal narcotics and immigration to the US.
Trump signed an order imposing hefty new tariffs of 25 per cent on goods from Mexico and Canada and 10 per cent on imports from China, threatening to ignite a trade war that could disrupt more than USD 2.1 trillion of annual trade.
However, hours before the tariffs would come into effect, Mexican President Claudia Sheinbaum said that the US agreed to suspend the implementation of Trump’s tariffs on Mexican goods for one month. The Mexican President said the development came after a “very good conversation” with the Republican leader.
In a statement on social media, Sheinbaum said after her conversation with Trump, Mexico would immediately deploy 10,000 National Guard soldiers to its northern border to curb the flow of illicit drugs into the US, with a particular focus on fentanyl.
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