Trump to Discuss Tariffs with Canadian and Mexican Leaders as Mexico Prepares ‘Plan B’ Response

FEBRUARY 3 – U.S. President Donald Trump is set to engage in critical talks with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau regarding his plans to impose significant tariffs on goods from both countries. The discussions come at a time when Mexico is preparing its own “Plan B” in response to the proposed tariffs.

Trump’s plan includes the imposition of a 25% tariff on goods imported from Mexico and Canada, along with a 10% tariff on imports from China. The U.S. president is expected to sign executive orders as early as Tuesday, which would set the tariffs in motion. This move has sparked widespread concern from both Canada and Mexico, which have warned of negative economic impacts and have prepared countermeasures.

Sheinbaum, who took office as president of Mexico in June, addressed the situation in a video posted on social media over the weekend. She made it clear that her government was advocating for “reason and law” in response to the tariff threats, emphasizing the importance of mutual respect and cooperation between nations. The president highlighted the potential repercussions for both the U.S. and Mexico, noting that a 25% tariff would drive up costs for all products exported from Mexico to the U.S., making them 25% more expensive.

“These tariffs will have serious consequences not only for Mexico but also for the United States economy,” Sheinbaum stated, underscoring that the added costs would be passed on to U.S. consumers, affecting the prices of many goods. The Mexican government has warned that such tariffs would strain economic ties and disrupt the well-established trade relationship between the two countries.

In a parallel response, Canadian Prime Minister Justin Trudeau addressed the looming tariffs in a statement released on Saturday evening. He confirmed that Canada would impose retaliatory tariffs on approximately $155 billion worth of U.S. goods, an effort aimed at protecting Canada’s economic interests. Trudeau made it clear that he had not communicated with President Trump since taking office, and his announcement signaled Canada’s firm stance on the issue.

While the exact details of Mexico’s “Plan B” remain scarce, Sheinbaum has instructed her economic team to activate a comprehensive set of measures aimed at protecting Mexico’s interests. These measures are said to involve both tariff and non-tariff approaches, but specific strategies are yet to be revealed. However, the Mexican president took the opportunity to remind the U.S. of the long-standing trade agreements between the two countries, which have been in place for around three decades. Sheinbaum also noted that these agreements, including the most recent one signed by President Trump and former President Andrés Manuel López Obrador, are critical to both nations’ economic well-being.

As discussions unfold, President Trump remains resolute in his position, claiming that the tariffs are necessary to address trade imbalances that have, in his view, unfairly benefited other nations at the expense of the U.S. economy. Trump expressed his belief that the American people would understand the short-term challenges posed by the tariffs, citing the larger goal of restoring fairness to international trade.

“We may experience some short-term pain, but the long-term benefit will be worth it,” Trump said, addressing reporters at Joint Base Andrews. “The United States has been exploited by nearly every nation across the globe. We have trade deficits with almost every country, and we’re going to change that. It’s been unfair, and that’s why we owe $36 trillion in debt.”

Trump’s comments also took aim at Canada, accusing the country of exploiting trade relations with the U.S. He characterized the relationship as a “one-way street,” claiming that Canada has been tough on U.S. exports, particularly in the areas of banking, energy, and agriculture. The president expressed frustration that Canadian policies have restricted access for U.S. businesses, while Canada allows U.S. goods to enter its market with fewer barriers.

“They don’t allow our banks in, which is incredible when you think about it,” Trump said. “Canada has been particularly stringent when it comes to energy policies. They don’t allow our farm products in. Essentially, they restrict a lot of things, while we allow everything to come in. It’s been one-sided for far too long.”

The looming tariffs have triggered concern among U.S. businesses that rely on imports from both Canada and Mexico, as well as those who export goods to these countries. Industries such as agriculture, automotive, and manufacturing, which are deeply intertwined with North American trade, could face significant disruptions. Experts warn that the tariffs could lead to higher prices for consumers and supply chain disruptions, affecting everything from groceries to electronics.

As the situation continues to develop, the discussions between President Trump, President Sheinbaum, and Prime Minister Trudeau will play a pivotal role in determining the future of trade relations in North America. While Trump insists on taking bold action to address trade deficits, Mexico and Canada are determined to protect their economies and safeguard the benefits of the long-established trade agreements that have benefited all parties.

The outcome of these talks will not only shape the future of U.S.-Canada and U.S.-Mexico relations but will also have a lasting impact on the broader global economy, as the ripple effects of trade policy decisions reach far beyond North America. As the global trade landscape continues to evolve, the stakes are high for all nations involved.