Trump’s Trade War Backfires: Canada and Mexico Strike Back as Chaos Unfolds

trump’s trade war backfires

By Mary Jones & Don Perry | Sunday, February 2, 2025 | 7 min read

Donald Trump has made a massive miscalculation. If he thought he could bully Mexico and Canada into submission with a 25% tariff, he was dead wrong. Both nations have responded with force. At the same time, Trump slapped a 10% tariff on China, prompting an immediate complaint to the World Trade Organization.

As always, Trump made his announcement with his signature bluster. He took to social media in all caps: “TARIFFS!” alongside a video of himself boasting that tariffs are his weapon to force other nations into line. To justify this move, he invoked emergency powers under the International Emergency Economic Powers Act (IEEPA), blatantly bypassing the very trade deal he had championed—the United States-Mexico-Canada Agreement (USMCA), which replaced NAFTA.

His reasoning? A wild claim that Canada is a narco-state deliberately funneling fentanyl into the U.S. He’s made similar accusations against Mexico, using fear tactics to push his agenda.

But Canada and Mexico aren’t playing along. Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum have condemned Trump’s actions. Trudeau revealed that he repeatedly tried to contact Trump in the weeks leading up to the announcement—only to be ignored. Instead, while Trump was out golfing, he threw the global economy into chaos.

Now, both countries are hitting back hard. Trudeau announced a 25% retaliatory tariff on $150 billion worth of American goods, with $30 billion taking effect immediately and the rest rolling out in phases. Speaking directly to the American public, he warned of the economic fallout: higher prices, supply chain disruptions, and lost jobs.

“Beyond that, it will have real consequences for you, the American people,” Trudeau stated. “Tariffs against Canada will put American jobs at risk, potentially shutting down auto plants and manufacturing facilities. They will raise costs on essential goods, from food to gas. They violate the very trade agreement your country negotiated and signed.”

Trump’s approach is pure recklessness—impose tariffs, ignore diplomacy, escalate tensions, then lash out when faced with retaliation. Even Republican lawmakers, who know the economic consequences, are too afraid to speak out. As journalist Ron Filipkowski noted, “The silence of most Republican members of Congress on the Trump tariffs tells you two things: 1) They know it’s a terrible idea. 2) They’re too scared of Trump to say anything, even though they know how much it’s going to hurt their constituents and the country.”

Meanwhile, Canada is strategically targeting tariffs to hit Trump’s political base. A New York Times headline summed it up: “Canada’s Plan for the Trade War: Cause Pain for Red States and Trump Allies.” The message is clear—pressure Trump’s strongest supporters until he backs down.

The auto industry is already feeling the heat. The head of a trade group representing Honda and Toyota’s Canadian manufacturing operations has warned that factories on both sides of the border could shut down, taking tens of thousands of American jobs with them.

As Trump’s economic war escalates, Canadians and Mexicans are rallying together. Trudeau is seeing widespread support across party lines, and Sheinbaum’s approval rating has surged to 80%. Meanwhile, anti-American sentiment is on the rise in Canada. At NHL games, crowds are booing the U.S. national anthem, and some are even calling for American flags to be removed from stadiums.

Despite all this, Trump keeps pushing a false narrative, insisting tariffs don’t cause inflation—ignoring decades of economic evidence. Nobel Prize-winning economists have warned that his policies could trigger another financial crisis, possibly worse than the Great Depression.

Bruce Bartlett, a former Reagan economic adviser, sounded the alarm: “Am I the only one out here who knows that the Smoot-Hawley Tariff was the principal trigger of the 1929 stock market crash and the Great Depression?”

History is repeating itself, and the consequences could be catastrophic. The question is, will the American public wake up before it’s too late?

Meanwhile, Democratic Congressman Eric Swalwell put it bluntly: “With Trump’s tariffs and his mass firing of cops who hunt terrorists, you now pay more and you are less safe.”

Former Bank of England head Mark Carney, a leading contender to become Canada’s next prime minister, echoed this sentiment. “Trump thinks we’re pushovers—he doesn’t know Canadians.” In a fiery speech, Carney laid out Canada’s response:

“Canada won’t bow to a bully, and we won’t stand by as tariffs hurt our workers and families. Trump wants us to cave in. That’s why Canadians must be united with the right response: dollar-for-dollar tariffs against the U.S., a plan to buy Canadian, a strategy to boost investment and support our workers, and initiatives to strengthen and diversify our economy. This couldn’t be more serious. In times of crisis, we need real leadership and a real plan. Trump thinks we’re pushovers, but he doesn’t know Canadians. We will always stand up for our country, and we will emerge stronger—together.”

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SEAMLESS SCULPT MID THIGH BODYSUIT

But there’s another alarming development: Elon Musk and his allies have seized control of the Office of Personnel Management. Federal employees have been locked out of their offices and computers, while Musk’s team now controls the vast dataset covering every facet of the federal workforce. In a dystopian twist, they’ve even brought in cots and beds, turning government offices into their personal headquarters.

And it’s not stopping there. Trump’s hand-picked Treasury Secretary, hedge fund executive Scott Bessent, has granted Musk direct access to the federal payment system—giving him control over Social Security, medical payments, IRS refunds, and more. An unelected billionaire now holds the keys to Americans’ most sensitive financial data.

Musk is openly bragging about it, posting updates with Roman Empire references while pushing his movement overseas. In a chilling post, he wrote: “People of Europe, join the MAGA movement. Make Europe great again.”

In Canada, Member of Parliament Charlie Angus is calling for action: “We are in the fight of our lives. Canadians have been called to be heroic before, and we have never been defeated. This is the time to defend our country.”

Democratic Governor JB Pritzker of Illinois also weighed in:

“Pardoning January 6th rioters who injured and killed police officers—that’s an attack on law enforcement. Cutting funding from police departments across the country weakens task forces fighting drug cartels and violent crime. Trump’s reckless policies aren’t making us safer—they’re making us more vulnerable. And let’s be clear—he promised to lower costs for Americans, to make us safer. Instead, he’s done the opposite. And I realize he’s only been in office two weeks, but things have already gotten worse. Prices are rising, crime is increasing, and the damage is just beginning.”

Trump’s reckless economic policies are already causing widespread damage, and the consequences will only grow more severe. His tariffs, driven by false narratives and political posturing, are backfiring—hurting American workers, increasing costs for everyday citizens, and straining international alliances. Meanwhile, his administration’s blatant power grabs, including handing over federal systems to billionaires like Elon Musk, threaten the very foundation of democracy.

History has shown us that economic isolation and authoritarian overreach lead to disaster. The question now is whether the American people will recognize the warning signs before it’s too late. Will they stand by as their jobs, privacy, and security are compromised? Or will they demand accountability and real leadership? The future of democracy and economic stability depends on the choices made today.

Copyright 2024 FN, NewsRoom.

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