Trade war Trumps 25% tariffs take effect; Canadian PM calls it a very dumb thing Stock markets sink; US faces retaliatory tariffs and complaints at the WTO. Jon Brodkin Mar 4, 2025 1:15 pm | 33 From left: Melanie Joly, Canada's foreign minister; Justin Trudeau, Canada's prime minister; Dominic LeBlanc, Canada's finance and intergovernmental affairs minister; and David McGuinty, Canada's minister of public safety, during a news conference in Ottawa, Ontario on Tuesday, March 4, 2025. Credit: Getty Images | Bloomberg From left: Melanie Joly, Canada's foreign minister; Justin Trudeau, Canada's prime minister; Dominic LeBlanc, Canada's finance and intergovernmental affairs minister; and David McGuinty, Canada's minister of public safety, during a news conference in Ottawa, Ontario on Tuesday, March 4, 2025. Credit: Getty Images | Bloomberg Story textSizeSmallStandardLargeWidth *StandardWideLinksStandardOrange* Subscribers only Learn morePresident Trump's 25 percent tariffs on Canada and Mexico took effect today, and the White House increased a tariff on China from 10 to 20 percent in an executive order. Canada, Mexico, and China announced retaliatory moves, and stock markets sank globally.Industry groups and companies have warned the Trump tariffs will raise prices for cars, groceries, consumer technology, and other products.Canada was hit with a 10 percent tariff on energy exports to the US, while other Canadian exports are subject to the 25 percent tariff. Prime Minister Justin Trudeau said his country would impose 25 percent tariffs on over $100 billion worth of US goods.China responded with new tariffs of 10 to 15 percent on US agricultural products starting March 10and other retaliatory moves such as blacklisting 15 US companies. Mexican President Claudia Sheinbaum said she will announce retaliatory tariffs and other measures on Sunday."There's no motive, reason or justification that supports this decision that will affect our people and nations," Sheinbaum reportedly said at a news conference. "We will always seek a negotiated solution, in a framework of respect." Sheinbaum said Mexico wants "dialogue, with reasoning and rationality."Trudeau: Trump tariffs a very dumb thing to doTrudeau said that Trump imposing tariffs is "a very dumb thing to do" and that Canada "will not back down from a fight." Addressing US residents, Trudeau said, "We don't want this, but your government has chosen to do this to you."Trump's executive orders have blamed Canada for "the flow of illicit drugs across our northern border," Mexico for a "sustained influx of illegal aliens and illicit opioids and other drugs," and China for a "sustained influx of synthetic opioids, including fentanyl."Trudeau said the tariffs violate a US/Mexico/Canada trade agreement signed by Trump in 2020. He said that "Canada plans to challenge the US's 'illegal actions' by filing dispute resolution claims against US tariffs at the World Trade Organization," the BCC reported.Trudeau denied Trump's claims about Canada failing to fight illegal drugs in a statement issued today. "While less than 1 percent of the fentanyl intercepted at the US border comes from Canada, we have worked relentlessly to address this scourge that affects Canadians and Americans alike," Trudeau said. "We implemented a $1.3 billion border plan with new choppers, boots on the ground, more co-ordination, and increased resources to stop the flow of fentanyl... Because of this workin partnership with the United Statesfentanyl seizures from Canada have dropped 97 percent between December 2024 and January 2025 to a near-zero low of 0.03 pounds seized by US Customs and Border Protection."China, which already had a pending complaint at the WTO regarding US tariffs, said it filed another lawsuit against the US at the WTO today.The S&P 500 and NASDAQ yesterday fell 1.8 and 2.6 percent, respectively, as Trump confirmed the tariffs would take effect. As of this writing, the S&P 500 was down another 0.8 percent today, while NASDAQ was down slightly.Trump is pushing firms to build more products in the US, and companies such as Apple and TSMC recently announced plans to invest more in US-based manufacturing. Trump took credit for the Apple plan and made a joint announcement with TSMC.Jon BrodkinSenior IT ReporterJon BrodkinSenior IT Reporter Jon is a Senior IT Reporter for Ars Technica. He covers the telecom industry, Federal Communications Commission rulemakings, broadband consumer affairs, court cases, and government regulation of the tech industry. 33 Comments