President Trump on Tuesday said he will hike the new 25% tariffs on Canadian goods if the country retaliates with its own levies.
Mr. Trump made the threat on his Truth Social media site hours after Canadian Prime Minister Justin Trudeau said he will implement a gradual plan for 25% tariffs on $155 billion in American goods, starting with $30 billion worth of products immediately.
“Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!” Mr. Trump posted.
The president levied the tariff on Canadian goods in response to an increase in smuggling of the deadly opioid Fentanyl across the northern border into the U.S. The drug killed 70,000 people in America last year.
Mr. Trump also railed against trade imbalances with America’s northern neighbor.
Canada imposes steep tariffs on U.S. exports, including dairy and poultry, that exceed quotas on lumber, metal and shoes. The trade imbalance is mostly caused by Canadian energy exports.
SEE ALSO: Trump tariffs send stocks into a dive as Canada, China retaliate
Mr. Trudeau on Tuesday called the tariffs on Canadian goods “unjustified” and said they would upend a successful trading partnership.
In another Truth Social post Tuesday, Mr. Trump complained of rules that penalize U.S. banks from doing business in Canada
He also invited manufacturers to produce products in America, which Trump officials said is one of the main goals of implementing tariffs.
“If companies move to the United States, there are no tariffs!!!” the president posted.
The Trump administration on Tuesday began levying 25% tariffs on goods imported from Canada and Mexico and doubled tariffs on China imports to 20%.
All three countries announced plans to impose retaliatory tariffs. Stocks tumbled for a second straight day in response to the tariffs, with the Dow Jones Industrial Average down around 600 points early Tuesday afternoon.
