In a new escalation of the trade crisis between the United States and Canada, Canadian Prime Minister Justin Trudeau described the decision of former U.S. President Donald Trump to impose tariffs on Canadian imports as "very stupid," confirming that his country will not stand idly by in the face of these actions.

During a press conference, Trudeau addressed Trump saying: "You are a smart man, but this is a very stupid step," warning of the economic repercussions that will result from these decisions, not only for Canada but also for the U.S. economy and the companies that rely on Canadian raw materials.

Canada retaliates with punitive tariffs

In response to the U.S. tariffs targeting Canadian products such as steel and aluminum, Trudeau announced a 25% tariff on a range of U.S. products valued at 155 billion Canadian dollars, based on a two-phase implementation plan:

• Phase One: Will include tariffs on U.S. goods worth 30 billion Canadian dollars and will come into effect immediately.

• Phase Two: Will be applied to additional goods worth 125 billion Canadian dollars, 21 days after the implementation of Phase One.

Economic repercussions and market decline

These measures have led to disruptions in financial markets, with the "Dow Jones" index dropping by about 650 points immediately after the announcement of the tariffs, reflecting investors' fears of the impact of the trade war on the global economy.

U.S. companies have also warned that these tariffs will lead to higher production costs, which will be reflected in final prices for consumers in the United States.

Potential additional measures from Canada

In addition to imposing tariffs, Trudeau hinted that Canada may take additional non-tariff measures in coordination with provinces and territories if the United States continues its aggressive trade policies.

In a related context, Ontario Premier Doug Ford announced that his government is considering suspending electricity exports to some U.S. states, and indicated the possibility of imposing restrictions on exports of nickel and critical minerals used in U.S. technology industries.

U.S. administration's stance

For his part, Trump defended his decision, affirming that the tariffs aim to protect American industries and reduce the trade deficit with Canada. He considered these measures necessary to maintain American jobs and support the manufacturing sector in the United States.

Escalating trade confrontation between the two countries

These developments indicate an escalation of the trade crisis between the United States and Canada, as these decisions are expected to impact the global economy more broadly. With the possibility of further reactions from both sides, observers are awaiting to see how this confrontation will affect commodity prices, jobs, and economic relations between the two countries in the coming months.