US President Donald Trump stated that he spoke with Canadian Prime Minister Justin Trudeau on Monday (Feb 03) about the tariffs he had imposed on Canada, adding that they would have another conversation later in the day.
“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 3:00 PM,” Trump wrote on Truth Social. He emphasized that the tariffs were part of a broader effort to combat drug trafficking, particularly fentanyl.
Canada strikes back with trade restrictions
The trade war between the two neighboring countries escalated following Trump’s announcement on Saturday, prompting Canada to consider countermeasures. Ontario, Canada’s most populous province and a key economic hub, responded by banning US companies from bidding on government contracts worth tens of billions of dollars. It also canceled an agreement with Elon Musk’s Starlink in retaliation for the tariffs.
“Ontario won’t do business with people hellbent on destroying our economy,” Ontario Premier Doug Ford posted on X. “US-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame.” The tariffs have also sparked a public backlash, with many Canadians canceling trips to the US and boycotting American products, including alcohol. At sporting events, US teams and players have been met with boos.
Canadians boycott US products
One of the industries hit hardest by Canada’s retaliation is the US alcohol sector, with Canadian consumers leading the pushback.
White House defends tariffs
The White House defended the tariffs, citing an “extraordinary threat posed by illegal aliens and drugs” and positioning them as part of a national emergency. However, the economic consequences have spread rapidly, with effects felt across businesses and retailers in both countries.