Trump speaks to Trudeau as US tariffs ignite trade war; Ontario scraps agreement with Musk’s Starlink
World: The trade war between the two neighbours escalated after Trump’s announcement on Saturday, which prompted Canada to consider countermeasures.
US President Donald Trump said he spoke with Canadian Prime Minister Justin Trudeau on Monday (Feb 3) regarding 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 reiterated that the tariffs were part of an effort to curb drug trafficking, particularly fentanyl.
Canada responds with trade restrictions
The trade war between the two neighbours escalated after Trump’s announcement on Saturday, which prompted 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 scrapped an agreement with Elon Musk’s Starlink in response to 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."
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The tariffs have also led to a public backlash, with many Canadians cancelling 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
Among the industries most affected by Canada’s retaliation is the US alcohol sector, with Canadian consumers leading a pushback.
White House defends tariffs as economic impact grows
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 quickly, with effects felt across businesses and retailers in both countries.
(With inputs from agencies)
