Summary

Media caption,

Watch: Key moments from Trudeau's speech slamming US tariffs

  1. Wider trade war rumbles closer as Trudeau calls Trump tariffs 'dumb'published at 22:12 Greenwich Mean Time 4 March

    Adam Goldsmith
    Live reporter

    Empty shelf of American whiskeyImage source, Reuters
    Image caption,

    Stores in Canada have already started to remove American products in response to Trump's tariffs

    Rumblings of an all-out trade war sounded shortly after midnight this morning, when Donald Trump followed through on his threat to introduce tariffs on goods imported from China, Canada and Mexico.

    A 10% levy on Chinese imports to the US introduced last month was doubled to 20%, while an initial tariff of 25% was slapped on goods from Mexico and Canada.

    Stock markets around the world soon began to sink, and analysts warned the new measures could drive up prices for American households.

    The White House said the levies would hold the countries accountable for promises to halt illegal immigration and prevent fentanyl imports across the US border. Trump says they are also central to growing the economy.

    Beijing retaliated immediately, announcing 15% tariffs on some US agricultural imports and sanctioning US biotech and aviation firms.

    Mexico’s President Claudia Sheinbaum, meanwhile, told reporters that she’ll wait until Sunday to unveil the full extent of her country’s response.

    But it was Canada’s Prime Minister Justin Trudeau who had the sternest comeback for the US president.

    In a speech marking his final week in office, Trudeau denounced the tariffs as a “dumb thing to do”, and accused the president of sparking a “trade war” against its closest ally in the hope that causing the Canadian economy to “collapse” would lead to it becoming the 51st US State.

    The Canadian prime minister didn't stop there; he also said he would be implementing 25% tariffs against $155bn worth of American goods - which led Trump to threaten on social media that another “reciprocal tariff” would follow.

    This evening the US secretary of commerce hinted that Trump would "meet in the middle" with Canada and Mexico, without specifying what that would mean.

    For now, that's the end of our live coverage on tariffs here, but our colleagues in Washington DC are following Donald Trump’s address to Congress this evening, where the US president has promised a "big" statement - you can follow that here.

  2. Watch: Mexico's president says no justification for tariffspublished at 21:47 Greenwich Mean Time 4 March

    Earlier today, President Sheinbaum said Mexico will respond to Trump's tariffs with 'tariff and non-tariff measures".

    She criticised the US implementation of tariffs and said that more details on Mexico's retaliatory tariffs will be announced on Sunday.

  3. US commerce secretary: 'Trump will find middle ground' with Canada and Mexicopublished at 21:35 Greenwich Mean Time 4 March

    Howard LutnickImage source, Getty Images

    Donald Trump's Secretary of Commerce Howard Lutnick says he expects a resolution with the US' neighbours to be reached on tariffs sooner rather than later.

    Speaking with Fox News just now, Lutnick suggests that he's spent the day on the phone with representatives of Canada and Mexico, who he says are "trying to show that they'll do better".

    And Lutnick suggests that the president is listening to their responses to the tariffs.

    "I think he's going to work something out with them," he says, adding: "It's not going to be a pause."

    "But I think he's going to figure out, 'you do more and I'll meet you in the middle some way', and we're going to probably be announcing that tomorrow.

    "Somewhere in the middle will likely be the outcome, the president moving with the Canadians and Mexicans, but not all the way."

  4. What do tariffs mean for cheap Chinese online retailers?published at 21:23 Greenwich Mean Time 4 March

    Imran Rahman-Jones
    Technology reporter

    Chinese ecommerce apps such as Temu and Shein have exploded in the US in recent years. But they can compete “only because they are rock-bottom priced,” says VP principal analyst Sucharita Kodali from business consultancy Forrester.

    So a 20% tariff puts a dent in their competitive advantage. But there’s another, potentially bigger problem. The US allows goods worth under $800 to pass through its borders without paying customs duties – and that’s been scrapped for China. So alongside the tariffs, it’s a double hit for Chinese retailers.

    “These companies have been dependent on the threshold... When you build a business on such a tenuous circumstance, you can only be so disappointed when it goes away,” Kodali says.

    I contacted Temu and Shein but neither have responded. However Bloomberg reported, external both retailers saw a drop in sales after tariffs first came in last month.

  5. US stock market closes as S&P 500 falls to lowest level since Novemberpublished at 21:11 Greenwich Mean Time 4 March

    Natalie Sherman
    New York business reporter

    Stock market pictureImage source, Getty Images

    The US stock market has just closed for the day.

    The S&P 500, which tracks 500 of the biggest companies in the US, fell 1.2% to end at its lowest level since November, wiping out the gains that followed Trump’s election victory in November.

    The Dow closed down more than 1.5%, while the Nasdaq, where many tech companies are listed, ended roughly 0.3% lower.

    Retailers and carmakers – which are expected to be significantly affected by the trade measures - were among the hardest hit, with shares in electronics chain Best Buy ending the day down more than 13%.

    The company had warned earlier on Tuesday the tariffs would lead to higher prices.

    "The giant wildcard obviously is how the consumers are going to react to the price increases in light of a lot of price increases potentially throughout the year," chief financial officer Matt Bilunas said on an investor call.

  6. Auto workers union hail taxes as way to end US's 'free trade disaster'published at 20:42 Greenwich Mean Time 4 March

    Michelle Fleury
    New York business correspondent

    The United Auto Workers (UAW) union have put out a statement praising Donald Trump’s tariffs on Canada, Mexico and China.

    "We are glad to see an American president take aggressive action on ending the free trade disaster that has dropped like a bomb on the working class," it says.

    The UAW and President Trump haven’t always seen eye to eye. In the lead-up to the 2024 US presidential election, the UAW - headed by Shawn Fain - endorsed Kamala Harris.

    But they appear to have found common ground.

    The UAW boss shares the president’s view that tariffs can be used to bring back jobs to America and reverse globalisation.

  7. Trucks, petrol and batteries - the products affected by Trump's tariffspublished at 20:24 Greenwich Mean Time 4 March

    With all this talk about the tariffs Donald Trump has enacted on imports from Canada, Mexico and China, you may well be wondering which products it is that'll actually be affected.

    Our colleagues on the BBC's visual journalism team have taken a look at just that, using data from last November to see what the three nations imported most to the US at that time.

    Take a look:

    A graph showing the products the US imports most from the nations he's hit with tariffs (Mexico, China and Canada). Mexico's most imported item into the US last November was delivery trucks, China's was electric batteries and Canada's was crude petroleum.
  8. What do tariff-hit business owners have to say?published at 19:49 Greenwich Mean Time 4 March

    Isabella Bull
    BBC World Service

    Fred Sanchez, the owner of Bad Hombre Importing, wears a blue shirt and has his arm around a woman wearing a headscarf and holding a brown bottle.

    Fred Sanchez is the owner of Bad Hombre Importing - a US importer and distributor of Mexican agave spirits.

    He tells the BBC World Service’s OS programme that his business is "in a holding pattern" but is "not able to absorb the levies like a big company could" - so will have to pass on at least a portion of these tariffs to consumers.

    "If this goes on more than a couple of months, it might put us out of business," he adds.

    President Donald Trump’s suggestion that businesses move production to the US is unrealistic in Sanchez's line of work, he says: "You can’t import the skillset from generations of traditional mezcal production [in Mexico]."

    Traci Tapani - co-president of Wyoming Machine, a sheet metal fabricator that purchases aluminium from Canada - agrees:

    "The United States does not make enough aluminium to supply the demand that we have here… you can’t just flip a light switch and start producing 50% more aluminium. That’s just not gonna happen. This will hurt businesses."

    Traci Tapani, co-president of Wyoming Machine, smiles and looks into the camera. She's got a blonde bob and is wearing a grey suit and pink lipstick.
  9. Canadian stores encourage buyers to 'look for the leaf'published at 19:39 Greenwich Mean Time 4 March

    After Donald Trump's 25% tariffs on Canadian, Mexican and Chinese goods kicked in overnight, some stores across the US border have already started encouraging customers to buy Canadian-made goods.

    At one supermarket in Toronto, people are being encouraged to "look for the leaf", referring to the Canadian maple leaf symbol used to identify local - and therefore untaxed - produce.

    Take a look:

    A 'look for the leaf' signImage source, Getty Images
    A sign shows Canadian types of milkImage source, Getty Images
    A sign shows Canadian pastaImage source, Getty Images
  10. Canadian leaders vow to fight back, and majority of people here support thempublished at 19:06 Greenwich Mean Time 4 March

    Nadine Yousif
    Reporting from Toronto

    Canadian PM Justin Trudeau stands behind a lectern, embossed with Canada's maple lead logo, as he speaks to reporters. There are a line of Canadian flags behind him, as well as three officials, all stood with their hands crossed down by their waist.Image source, EPA

    Retaliation to US tariffs in Canada is not only coming from Prime Minister Justin Trudeau (look at what he had to say on the matter earlier), but also from each individual province.

    In Nova Scotia, Premier Tim Houston has said he would ban American companies from bidding on provincial contracts, and would remove all American liquor from stores. He also called Donald Trump "a short-sighted man who wields his power just for the sake of it".

    American booze has also been pulled off shelves in other provinces, including Ontario - Canada’s largest province by population.

    Ontario leader Doug Ford has said he is willing to go further if the tariffs stick, including cutting electricity supply to the US as a last measure. Ford also raised the possibility of slapping a 25% export tariff on electricity that Ontario sends to 1.5 million homes in Minnesota, Michigan and New York.

    This is undoubtedly to put pressure on Trump to back down, as such a move would raise costs significantly for impacted Americans.

    Canadians appear to largely support efforts to fight back.

    Data released today by national pollster Angus Reid shows that more than half of Canadians are angry with Trump’s tariffs - as well as his repeated threats to annex Canada - and more than 60% support not only reciprocal tariffs, but also a ban on critical Canadian exports to the US.

  11. 'We're putting America first' - Trump officials weigh in on tariffspublished at 18:36 Greenwich Mean Time 4 March

    Bernd Debusmann Jr
    Reporting from the White House

    A trickle of officials have spoken to reporters outside the West Wing today - with tariffs at the top of the agenda.

    Just a little while ago, Alina Habba - counsellor to the president - told us she did not believe the tariffs set against Canada, Mexico and China would cause "difficulties" with other countries. "I think it's an adjustment," she said. "We're putting America first."

    She also said she understood the frustrations of some Americans, but laid the blame squarely at the feet of the Biden administration, adding:

    "There was nothing happening out of this White House. We were allowing countries to use tariffs against us, but then we would just take it, and those days are, frankly, behind us.

    "He's sending a strong message that people need to recognize that if you're going to hurt us economically, or importing or exporting, we're just going to be fair and say you're going to get the same thing back."

    Earlier, Trump's border tsar Tom Homan also said that he was "confident" in the president's plan - praising him as "doing exactly what he should be doing". He added: "I agree with his [trump's] policies on this. I think he's a game changer."

  12. Trump threatens reciprocal tariffs on Canadapublished at 18:01 Greenwich Mean Time 4 March
    Breaking

    A file photo of Donald Trump, he is wearing a suit and speaking into a microphoneImage source, Reuters

    In the last few minutes, Donald Trump has taken to social media, making his first public comments since Canadian Prime Minister Justin Trudeau's earlier news conference.

    "Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the US, our Reciprocal Tariff will immediately increase by a like amount!" Trump says on his Truth Social platform.

    The "governor" title appears to be linked to the US president's repeated calls for Canada to become the US's 51st state, something Trudeau referenced and strongly rejected in his remarks earlier.

    • If you want to catch up on what Trudeau said, head to our earlier round-up, it'll take you through everything you need to know
  13. Ontario leader says Canada needs to be 'ready to dig in for a long fight'published at 17:26 Greenwich Mean Time 4 March

    Man speaks from podium where sign reads "Canada is not for sale"Image source, CPAC Stream

    We've just heard from Ontario Premier Doug Ford who spoke to reporters in Toronto about the recently enacted tariffs.

    Ford - who has taken a harsh tone against Trump and his imposed tariffs in recent days - announced a handful of new actions to combat US-imposed tariffs.

    The Liquor Control Board of Ontario (LCBO) will no longer sell American products, Ford said.

    In addition, Ford said he's ripping up Ontario's Starlink contract.

    "We need to be ready to dig in for a long fight, we need to be ready to escalate using every tool in our tool kit," he said.

  14. 'A dumb thing to do' - the key lines from Trudeau's press conferencepublished at 17:17 Greenwich Mean Time 4 March

    Justin Trudeau speaking with Canadian flags behind him on stage

    Canadian Prime Minister Justin Trudeau - in his final week in office - has delivered a punchy response to new tariffs imposed by the US on Canadian goods, calling it “a dumb thing to do”.

    Here is a summary of the key lines from his press conference:

    • PM Trudeau described the tariffs as the US launching “a trade war against… its closest partner and ally, its closest friend”
    • Canada, he said, would be implementing 25% tariffs against $155bn worth of American goods - starting with tariffs on $30bn worth of goods immediately
    • The country also plans to file a legal challenge at the World Trade Organization (WTO) - claiming a violation of a free trade agreement that exists with the US
    • Trudeau then spoke directly to the American public,telling them Canada did not “want this”, accusing President Trump of choosing to put US jobs at risk
    • Trudeau then said the tariffs were a "dumb thing to do" and that there was no justification for them
    • He then also addressed President Trump - saying the two had done "big things together" in the past, adding he expected to speak to him again in the coming days
    • Answering questions from reporters, he said Trump wanted to see a "collapse" of the Canadian economy, before reiterating Canada would never become the 51st US state
  15. We are Canadians, we will fight and we will win - Trudeaupublished at 16:54 Greenwich Mean Time 4 March

    Trudeau, who is stepping down and whose party is choosing a successor this weekend, is asked what he will do in the meantime when it comes to responding to US tariffs.

    He reiterates that this will be a tough time for Canada but that the most important thing for Canadians will be to ensure they do not become divided over this issue and stay united.

    Finally, Trudeau is asked whether this is an act of war.

    He reiterates what he said earlier in his news conference that this is a "trade war" brought on by the US government.

    Trudeau then goes on to say that Canadians are "hurt, angry and frustrated" adding that when the US national anthem is booed it is not because of the players and the team - it is because of this policy.

    "We are Canadians," Trudeau says. "We are going to fight and we are going to win."

    The press conference has now ended, stay with us as you the latest reactions to Trudeau's comments.

  16. 'Canada will never be the 51st state'published at 16:43 Greenwich Mean Time 4 March

    The Canadian prime minister is now asked what he thinks Trump wants by implementing these tariffs.

    Trudeau replies that it's hard to know as the excuse of fentanyl is "bogus" and "completely false".

    As a result, Trudeau describes how the only remaining explanation is what he says Trump has said "repeatedly".

    "What he wants is to see a total collapse of the Canadian economy," he explains. "Because that will make it easier to annex us."

    Trudeau says this is "never going to happen", stressing: "Canada will never be the 51st state."

    He adds that he doesn't know "what negotiations we could start at the moment to convince Trump".

  17. Trudeau expects to speak to Trump in 'coming days'published at 16:32 Greenwich Mean Time 4 March

    Justin Trudeau

    Trudeau is now taking 20 minutes of questions - the first reporter asks if the Canadian PM has any conversations scheduled with President Trump and whether he believes the tariffs are really about fentanyl.

    The PM says he has "offered to speak to Donald over the last number of days" and he also expects "to speak with him in the coming days".

    "The facts show very clearly that in terms of taking action against fentanyl we are doing everything that is necessary not just for the United States, but for Canadians, on the scourge that is illegal fentanyl."

    We're still listening to questions from reporters and will bring you any key lines as we get them.

  18. Trudeau: Canada will 'relentlessly fight' to protect economy and workerspublished at 16:30 Greenwich Mean Time 4 March

    We're continuing to bring you updates from Canadian PM Justin Trudeau's news conference, which is focused on the new tariffs regime between the US and Canada.

    Trudeau says the government will use every tool it has to help Canadians weather this storm, from expanding support for people who lose their jobs to helping businesses stay afloat.

    Canada will also target any "predatory" behaviour that seeks to take advantage of the current economic instability.

    "No matter how long this will last, the federal government will be there for you," he says, adding that Canada will "relentlessly fight" to protect its economy.

  19. We have done big things together - Canada's PM addresses Trump directlypublished at 16:28 Greenwich Mean Time 4 March

    Trudeau, saying he wants to speak now directly to one American - "Donald" - says the two have done "big things together" in the past.

    "Now we should be working together to ensure even greater prosperity for North Americans," he says.

    "We two friends fighting is exactly what our opponents around the world want to see," Trudeau says, adding that now, in such an uncertain time, is the time to work together.

    The Canadian PM then moves on to address his fellow Canadians saying: "I won't sugar coat it, this is going to be tough."

  20. Tariffs are a 'dumb thing to do' - Trudeaupublished at 16:22 Greenwich Mean Time 4 March

    Media caption,

    Watch: Tariffs are 'dumb thing to do,' Trudeau tells Trump

    Trudeau continues his punchy address saying the US has chosen to launch a trade war "which will first and foremost harm American families".

    "They have chosen to sabotage their agenda," Trudeau adds. "There is absolutely no justification or need for these tariffs today."

    He goes on to describe the tariffs as being a "dumb thing to do".

    The Canadian PM says it undermines the agreement he and President Trump made to tackle the issue of fentanyl production and outlines the steps his country has taken against it.

    He insists Trump's claim that Canada is unwilling to fight the drug is "totally false".