How are Canada and Mexico responding to the U.S. tariffs

Canada and Mexico are responding to the U.S. tariffs with a combination of retaliatory measures and diplomatic efforts:

Canada's Response

• Retaliatory Tariffs: Canada has announced a robust tariff package targeting over $100 billion worth of American goods. This could increase to $155 billion if the U.S. tariffs remain in place.
• Economic Measures: Canadian provinces have taken additional steps, such as limiting procurement from U.S. entities, canceling contracts, and removing U.S. alcohol from provincially controlled liquor stores.
• Diplomatic Engagement: Despite strong rhetoric, Canadian Prime Minister Justin Trudeau has engaged in diplomatic efforts, including a phone call with President Trump.

Mexico's Response

• Retaliatory Tariffs: Mexico has announced plans to implement retaliatory tariffs on U.S. goods, with details to be announced later. This includes a "Plan B" that may involve periodic rotation of targeted U.S. products.
• Diplomatic Approach: Mexican President Claudia Sheinbaum has adopted a more cautious approach, emphasizing diplomacy and seeking negotiations with the U.S. before implementing tariffs.
• Trade Diversification: Mexico is considering alliances with other countries and exploring alternative trade partners beyond the U.S.

Both countries are navigating the situation with a mix of economic countermeasures and diplomatic efforts to mitigate the impact of the U.S. tariffs.