Canadian PM criticises Trump over tariffs – and sends bold message to Americans
Canada’s prime minister Justin Trudeau has labelled new tariffs imposed by US president Donald Trump as a “dumb thing to do”.
It was confirmed overnight that tariffs on goods coming into the US from Mexico, Canada and China had come into effect.
Mr Trump’s expansion of tariffs to cover the top three trading partners of the United States has been met with promises of retaliation and a retreat in stock market values globally.
Mr Trudeau, speaking in a press conference on Tuesday, said his government would file a legal challenge against the US at the World Trade Organisation, and that Canada was considering its options.
“Today the United States has launched a trade war against Canada, its closest partner and ally, its closest friend,” he said.
“They have chosen to sabotage their agenda. There is absolutely no justification or need for these tariffs today.”
Justin Trudeau holds a news conference on Trump’s new tarrifs.
Pic: The Canadian Press/AP
He also described the tariffs as a “dumb thing to do” and that it undermined his understanding of an agreement he made with Mr Trump over fentanyl production.
Mr Trudeau also warned it would impact American workplaces and add to inflation in the US.
Addressing the American public, he said: “We don’t want this… but your government has chosen to do this to you.”
The new tariffs will be felt heavily by all exporters in those countries, but also by US companies which rely on supplies from them.
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What is America’s trade position?
Mexico and Canada face tariffs of 25%, with 10% for Canadian energy. Tariffs on Chinese imports have doubled, raising them from 10% to 20%.
Canada announced it would retaliate immediately, imposing 25% tariffs on US imports worth C$30bn (£16.3bn).
It added that the tariffs would be extended in 21 days to cover more US goods entering the country without a climbdown.
Mr Trump responded by saying that he would match any Canadian tariffs immediately through higher duties.
At a news conference, outgoing prime minister Justin Trudeau described the tariffs as “dumb” and said Canadian companies would be given government support that would even extend to protections against takeover interest caused by the trade war.
Mexico threatened both reciprocal tariffs along with non-tariff measures.
China also vowed to retaliate and reiterated its stance that the Trump administration was trying to “shift the blame” and
“bully” Beijing over fentanyl flows.
Stock markets were down sharply across the world on Tuesday, with the Dow Jones Industrial Average and the broader S&P 500 on course for big falls for a second day.
The Nasdaq later entered positive territory.
Share prices for carmakers were among the worst performers generally.
Companies including General Motors, VW and Mercedes saw sharp falls as each has factories in Mexico which sell into the US.
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European stock markets had achieved record levels on Monday on the back of higher defence spending pledges.
But the German DAX closed more than 3.5% off. Its leading faller was Continental, the car parts manufacturer best known for its tyres, which saw an 11% decline.
The CAC in Paris was down by almost 2% while the FTSE 100 closed 1.3% lower as fears of an expanded trade spat overcame global growth hopes.
The implications were playing out more widely.
Oil costs were down by 1.5%, with Brent crude trading at six-month low of $70 a barrel.
Cryptocurrencies were hit too amid the flight from risk. Bitcoin was trading at $83,170 – far below the $100k+ witnessed when Mr Trump took office.
There was also evidence that investors saw the tariffs as an own goal because the US dollar – usually a safe haven in times of market woes – came under pressure.
The pound was trading at its highest level versus the dollar since mid-December at just shy of $1.28.
The main threat to the US is that higher import costs, caused by tariffs, push up inflation as those costs are passed on.
Consumers in the US could see price hikes within days, one expert said.
Gustavo Flores-Macias, a public policy professor at Cornell University, New York, said “the automobile sector, in particular, is likely to see considerable negative consequences”.
This is due to supply chains that “crisscross the three countries in the manufacturing process” and ” because of the expected increase in the price of vehicles, which can dampen demand,” he added.
Read more:
The effects of Trump trade tariffs explained
Trump may have talked America into recession
The Trump administration is gearing up to bring in other tariffs in the coming weeks.
On 2 April, reciprocal tariffs will take effect on all countries that impose duties on US products.
He is also considering 25% tariffs on goods from the EU “very soon” after claiming the bloc was created to “screw the United States”.
World
Trump criticises Putin after potentially ‘historic’ meeting with Zelenskyy before Pope’s funeral
Donald Trump has criticised Vladimir Putin and suggested a shift in his stance towards the Russian president after a meeting with Volodymyr Zelenskyy before the Pope’s funeral.
The Ukrainian president said the one-on-one talks could prove to be “historic” after pictures showed him sitting opposite Mr Trump, around two feet apart, in the large marble hall inside St Peter’s Basilica.
The US president said he doubted his Russian counterpart’s willingness to end the war after leaving Rome after the funeral of Pope Francis at the Vatican.
Follow live updates: 200,000 mourn at Vatican
In a post on his Truth Social platform, he said “there was no reason” for the Russian president “to be shooting missiles into civilian areas, cities and towns, over the last few days”.
The two leaders held talks before attending the Pope’s funeral
He added: “It makes me think that maybe he doesn’t want to stop the war, he’s just tapping me along, and has to be dealt with differently, through ‘Banking’ or ‘Secondary Sanctions?’ Too many people are dying!!!”
The meeting between the US and Ukrainian leaders was their first face-to-face encounter since a very public row in the Oval Office in February.
Mr Zelenskyy said he had a good meeting with Mr Trump in which they talked about the defence of the Ukrainian people, a full and unconditional ceasefire, and a durable and lasting peace that would prevent the war restarting.
Other images released by the Ukrainian president’s office show Sir Keir Starmer and French President Emmanuel Macron were present for part of the talks, which were described as “positive” by the French presidency.
Mr Zelenskyy‘s spokesman said the meeting lasted for around 15 minutes and he and Mr Trump had agreed to hold further discussions later on Saturday.
The world leaders shared a moment before the service
Donald Trump and Volodymyr Zelenskyy meet in the Basilica
But the US president left Rome for Washington on Air Force One soon after the funeral without any other talks having taken place.
The Ukrainian president’s office said there was no second meeting in Rome because of the tight schedule of both leaders, although he had separate discussions with Mr Starmer and Mr Macron.
The French president said in a post on X “Ukraine is ready for an unconditional ceasefire” and that a so-called coalition of the willing, led by the UK and France, would continue working to achieve a lasting peace.
There was applause from some of the other world leaders in attendance at the Vatican when Mr Zelenskyy walked out of St Peter’s Basilica after stopping in front of the pontiff’s coffin to pay his respects.
Donald Trump and the Ukrainian president met for the first time since their Oval Office row. Pic: Reuters
Sir Tony Brenton, the former British ambassador to Russia, said the event presents diplomatic opportunities, including the “biggest possible meeting” between Mr Trump and the Ukrainian leader.
He told Sky News it could mark “an important step” in starting the peace process between Russia and Ukraine.
Professor Father Francesco Giordano told Sky News the meeting is being called “Pope Francis’s miracle” by members of the clergy, adding: “There’s so many things that happened today – it was just overwhelming.”
The bilateral meeting comes after Mr Trump’s peace negotiator Steve Witkoff held talks with Mr Putin at the Kremlin.
They discussed “the possibility of resuming direct negotiations between Russia and Ukraine”, Kremlin aide Yuri Ushakov said.
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Russia and Ukraine have not held direct talks since the early weeks of the war, which began in February 2022.
Mr Trump has claimed a deal to end the war is “very close” and has urged Mr Zelenskyy to “get it done” in a post on his Truth Social platform.
He has previously warned both sides his administration would walk away from its efforts to achieve a peace if the two sides do not agree a deal soon.
Meanwhile, the Polish armed forces said a Russian military helicopter violated its airspace over the Baltic Sea on Friday evening.
“The nature of the incident indicates that Russia is testing the readiness of our air defence systems,” they said in a post on X.
On an extraordinary day, remarkable pictures on the margins that capture what may be a turning point for the world.
In a corner of St Peter’s Basilica before the funeral of Pope Francis, the leaders of America and Ukraine sit facing each other in two solitary chairs.
They look like confessor and sinner except we cannot tell which one is which.
Leaning forward hands together in their laps, Donald Trump and Volodymyr Zelenskyy stare at each other in one photo.
In another, the Ukrainian president seems to be remonstrating with the US president. This is their first encounter since their infamous bust-up in the Oval Office.
The two leaders held talks before attending the Pope’s funeral
Other pictures show the moment their French and British counterparts introduced the two men. There is a palpable sense of nervousness in the way the leaders engage.
We do not know what the two presidents said in their brief meeting.
But in the mind of the Ukrainian leader will be the knowledge President Trump has this week said America will reward Russia for its unprovoked brutal invasion of his country, under any peace deal.
Mr Trump has presented Ukraine and Russia with a proposal and ultimatum so one-sided it could have been written in the Kremlin.
Kyiv must surrender the land Russia has taken by force, Crimea forever, the rest at least for now. And it must submit to an act of extortion, a proposed deal that would hand over half its mineral wealth effectively to America.
The world leaders shared a moment before the service
Afterwards, Zelenskyy said it had been a good meeting that could turn out to be historic “if we reach results together”.
They had talked, he said, about the defence of Ukraine, a full and unconditional ceasefire and a durable and lasting peace that will prevent a war restarting.
The Trump peace proposal includes only unspecified security guarantees for Ukraine from countries that do not include the US. It rules out any membership of Ukraine.
Ukraine’s allies are watching closely to see if Mr Trump will apply any pressure on Vladimir Putin, let alone punish him for recent bloody attacks on Ukraine.
Or will he simply walk away if the proposal fails, blaming Ukrainian intransigence, however outrageously, before moving onto a rapprochement with Moscow.
If he does, America’s role as guarantor of international security will be seen effectively as over.
This could be the week we see the world order as we have known it since the end of the Second World War buried, as well as a pope.
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