-
US actress Selma Blair arrested after flight altercation
-
Talarico rejects mental health conspiracy theory after return from flu
-
One dead as Hurricane Simon creeps along Mexico's Pacific coast
-
Brazil presidential candidate Flavio Bolsonaro to visit jailed father
-
Carrick's Man United 'hungry and eager' to fix worst start in decades
-
Brazil's patron saint reappears in polarized election campaign
-
Fury as US federal agents search anti-Trump lawmaker's home
-
US Open champ Zverev to become tennis world number one
-
One goal enough for Flick as Barca enter Galatasaray cauldron
-
Migrant crisis wounds unhealed in Ceuta as Spanish royals visit
-
A7 to unveil a service that will re-invent the international payments market
-
Brazilian judge allows Flavio Bolsonaro to visit jailed father
-
'Status quo' with EU 'not good enough', UK PM says as summit date set
-
France braces for fresh student demonstrations as Macron calls for 'respect'
-
Stolen Renoir paintings found behind wall in France
-
Zelensky doubtful on Russian acceptance of Trump's 'energy ceasefire'
-
French supermarkets suffer refrigerator shutdown after 'unprecedented' cyberattack
-
Federal agents search home of Trump critic Ilhan Omar: government
-
Arsenal lose Hincapie and Zubimendi in freak double blow
-
Pakistan detains hundreds from ex-PM Khan's party as protests falter
-
Saudi says resilience tested, vows response after deadly airport attacks
-
Australia's Smith off field after being struck on helmet
-
Alcaraz exits Shanghai Masters in straight-sets loss
-
UK retains early access to test latest US AI models
-
Pope to enter hospital on Tuesday for lung operation
-
Top NATO commander warns Russia any attack would be 'futile'
-
Renshaw shines again before Australia declaration
-
Stolen Renoir paintings found behind wall in France: prosecutor
-
Atletico's Simeone encourages goalless Alvarez improvement
-
UNHCR sounds alarm on funding crisis
-
FXGLOBE Rebuilds Its Copy Trading and PAMM Business With B2BROKER's B2COPY
-
French supermarket chains say cyberattack forced refrigerator shutdown
-
Nepal rescuers search for missing after flash flood
-
Minister's resignation rocks German coalition
-
Oil rises as Trump comments roil energy markets
-
Hurricane Simon lashes Mexico's Pacific coast, threatens landfall
-
Premier League in limbo as Manchester City soar
-
France schools protest rumbles on as Macron urges 'respect'
-
Zelensky vows to respond as Moscow silent on 'energy ceasefire'
-
Americans Hall and Woodford win economics Nobel for stabilisation models
-
Thousands march in India's capital to demand election chief resign
-
MEXC Brings AI, TradFi and the Future of Trading to Life at TOKEN2049 Singapore
-
African players in Europe: Mbeumo ends goal drought as United draw
-
Italian rice farmer beats heat with biodiversity haven
-
France's high school students plan fresh protests
-
Stocks mixed as oil prices slip after Trump hails 'energy ceasefire'
-
NZ bank in free speech row over 'explicit' sheep memes
-
Opposition, journalists allege police abuses during India protests
-
China Open champ Zheng withdraws from Wuhan citing fatigue
-
DATA Network joins Sui and Walrus to scale the supply chain for AI training data
Canada vows strong response, Mexico urges calm in face of Trump threats
Canada vowed strong pushback while Mexico urged calm on Tuesday in the face of US President Donald Trump's trade threats that risk throwing their economies into disarray.
The US president has accused both neighbors of being lax in preventing migrants and illicit drugs from coming into the United States, and called for a tightening of the borders.
Hours after taking his oath of office on Monday, he signaled that 25 percent punitive tariffs against the United States' two major trading partners could come as early as February 1.
He also said he would order troops to its border with Mexico to stem migrant flows.
"Canada will respond and everything is on the table," Prime Minister Justin Trudeau told a news conference, adding that Ottawa's reaction would be "robust and rapid and measured," but also match dollar for dollar the US tariffs on Canadian imports.
A Canadian government source told AFP that Ottawa is considering higher duties on US goods including steel products, ceramics like toilets and sinks, glassware and orange juice -- in a first phase of tariffs that could be extended.
Provincial and opposition leaders have also called for blocking exports of Canadian oil, electricity and critical minerals.
Mexican President Claudia Sheinbaum, meanwhile, downplayed the tariff threat while urging calm in the face of Trump's announcement of severe new restrictions on migration.
"It's important to always keep a cool head and refer to signed agreements, beyond actual speeches," she said at her regular morning conference.
- Bad neighbors -
Trump defended the tariffs on his first day in office, telling reporters as he signed an array of executive orders that Canada and Mexico are allowing "vast numbers of people to come in, and fentanyl to come in."
He signed an order directing agencies to study a host of trade issues including deficits, unfair practices and currency manipulation.
These could pave the way for further duties.
Sheinbaum, who has reacted to months of threats from Trump with a mix of pragmatism and firmness, noted that several of the measures dated from Trump's first mandate.
On trade, Canada and Mexico are theoretically protected by the Canada-United States-Mexico Free Trade Agreement (USMCA), signed during Trump's first term and hailed as "the best and most important trade agreement ever signed by the United States."
The pact replaced an earlier continental trade agreement from the 1990s and included new labor provisions aimed in particular at improving worker rights in Mexico.
It is due to be reviewed in 2026.
"For now, the trade treaty remains in effect," Sheinbaum noted.
Mexico leapfrogged China in 2023 to become the United States's largest trading partner. That year, the American trade deficit with Mexico rose to US$150 billion.
Trade conflicts between the three signatories have multiplied in recent years, concerning for example American genetically modified corn, Canadian dairy products, and trade in auto parts.
Trudeau on Tuesday warned that a trade war would cost the United States, but also "there will be costs for Canadians."
"This is a crucial moment for Canada and Canadians," he said.
According to economists, a trade war could plunge Canada -- which sends approximately 75 percent of its exports to the United States, led by its energy and auto sectors -- into a recession.
One scenario from Scotiabank suggests that any bilateral trade disruption could slash more than five percent from Canadian GDP, increase unemployment significantly and fuel inflation.
US GDP could fall by 0.9 percent, analyst Jean-François Perrault said in a research note.
According to the Canadian Chamber of Commerce, tit-for-tat tariffs would cause Canadian GDP to fall by 2.6 percent, while American GDP would suffer a decline of 1.6 percent.
burs-amc/st
O.Bulka--BTB