Mexico and Canada React to U.S. Tariffs; Ukraine Adjusts to Losing U.S. Support
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This message comes from Home Instead. Home Instead knows that if you leave home to seek aging care, you say goodbye to where you built your life. So why not stay with help from Home Instead? Learn more at HomeInstead.com. Home Instead, for a better what's next. Today on State of the World, Mexico and Canada react to U.S. tariffs and Ukraine adjusts to losing U.S. support.

You're listening to State of the World from NPR. We're the day's most vital international stories up close where they're happening. It's Tuesday, March 4th. I'm Greg Dixon. In a few minutes, Ukraine reacts to the Trump administration suspending military aid. First, after weeks of taunts and threats, President Trump has followed through on slapping 25% tariffs on America's two biggest trading partners, Mexico and Canada.

China also had its tariffs raised from 10 to 20 percent. Canada and China have hit back with retaliatory tariffs. Mexico says it will do the same. We're going to hear about the impact of these moves from NPR's Jackie Northam and Ader Peralta. They spoke to Juana Summers. Jackie, I'll start with you. What was Canada's response?

Well, Prime Minister Justin Trudeau immediately pledged that Canada would impose retaliatory tariffs. He said 25% import taxes would be placed on about $100 billion of U.S. products, and that'll be rolled out over the next three weeks. And there are also threats to withhold Canadian crude oil and hydroelectricity to some U.S. industries.

You know, Canada has been bracing for these terrorists ever since Trump first threatened to unveil them a month ago. And still during, you know, a lengthy press conference today, Trudeau seemed incredulous that Trump went ahead with them. The United States launched a trade war against Canada, their closest partner and ally, their closest friend. At the same time, they're talking about working positively with Russia,

appeasing Vladimir Putin, a lying, murderous dictator. Make that make sense. Trudeau warned that Trump's decision to place steep tariffs on the country will cause Canadians a lot of economic pain, and he urged them to stay strong and united. Ader, over to you. Mexico's Claudia Sheinbaum has also been talking. What has she had to say? I mean, it was a different approach. The strategy for Mexico has been to try to keep political

They have tried not to antagonize President Trump. Even today, President Claudia Sheinbaum gave a very sober speech. She said President Trump was breaking a free trade deal he signed himself. She said this unilateral move was senseless and said there was no reason to do this. It's time for Mexico's defense and its sovereignty.

We must be attentive and have tranquility, a cold head. It's time to defend Mexico, she said. We have to be poised, but we also have to keep a cool head. And to that end, she did not announce any retaliatory measures. Instead, she called on Mexicans to show up at the Zócalo, which is the main square here in Mexico City on Sunday, where she would announce how Mexico would respond. But

But what you get the feeling is that she delayed responding in order to try to talk to President Trump and try to get these tariffs removed before Sunday. Well, as both of these leaders have said, there are no winners in a trade war. So what's likely to be the impact on both sides of the border? Ada, are you first?

I mean, economists here are saying recession. One economist said that it feels like the beginning of the pandemic. No one knows what's coming or how long it will last. 80% of Mexico's exports go to the United States. Mexico is the United States' biggest trading partner. We're talking billions and billions of dollars in trade, everything from fuel to cars to electronics to plastics to cereals to avocados,

Prices will rise in both countries and we may see mass layoffs. Octavio de la Torre, the president of Concanaco, a conglomerate of chambers of commerce, says the U.S. stock markets are reacting negatively for a reason.

You can't isolate the effect only to Mexico, he said, because American companies are doing a ton of work here. For example, one of the biggest exporters here in Mexico is General Motors, an American car manufacturer. And Jackie, what about in Canada? What's the likely impact there?

Well, economists and analysts are predicting that this could send Canada into a recession as well. No one knows how long it's going to last. And Trudeau's talked about extending unemployment insurance for workers and helping businesses hard hit by tariffs. But, you know, there's already talk of seeing higher costs and contracts being cancelled.

Some provinces are going beyond federal efforts to retaliate. For example, Ontario cancelled a $100 million contract with Starlink, and that's Elon Musk's satellite internet company. Well, I mean, as we already mentioned, these two countries are the U.S.'s biggest trading partners. But Jackie, looking beyond trade for a moment, what's the likely knock-on effect?

Yeah, I mean, Canada feels it was more than a trading partner. It was a longtime ally, and now that's shattered. And, you know, effectively, this is Trudeau's last week in office, and I think he may have felt free to go out on a limb. At a press conference, he suggested that Trump's real goal is to collapse Canada's economy so the U.S. could annex the country. And at one point, Juana, Trudeau addressed Trump directly. He looked directly straight into the camera and called him by his first name as he referred to a recent editorial in the Wall Street Journal.

Donald, they point out that even though you're a very smart guy, this is a very dumb thing to do. And no surprise, Trump responded dismissively, calling him Governor Trudeau and threatening more tariffs likely next month. Adderall, I'll let you have the last word here. What about Mexico? I mean, look, this Mexican-American partnership has not been easy to build. These are two countries that have been at war. Mexico lost half its territory to the United States.

And one thing that the Mexican president keeps saying is that this partnership, which has been forged for the past 30 years or so, is in the end a good thing. It has meant a robust Mexican economy. It means the countries are living peacefully in what has become the biggest market in the world. And now it seems President Trump is throwing that away. And the Mexican president is already talking about finding new markets.

So the question is, do these tariffs stick around long enough for Mexico to turn away from North America? Do these tariffs stick around long enough to undo what has become a special relationship between Mexico and the U.S.? And the big question is, does this mark an end to globalism? That is NPR's Ader Peralta and Jackie Northam. Thanks to both of you. Thank you. Thank you, Juana.

Following an explosive Oval Office meeting between President Trump and Ukrainian President Volodymyr Zelensky, the U.S. has announced it is suspending military aid to Ukraine. Russia has welcomed the move. Ukraine's president has repeated his desire to improve his relationship with Trump and work towards a lasting peace. Meanwhile, Ukrainians are wondering, can they manage to keep fighting the war without their single most important ally? Here's NPR's Joanna Kikisis in Kyiv.

When I first interviewed Ukrainian lawmaker Oleksandr Merezhko last month, he had high hopes for President Trump. He even nominated Trump for the Nobel Peace Prize last year. Because I hope that

He might bring peace to Ukraine, but by peace, I don't mean appeasement of the aggressor. I don't mean peace at the expense of our territories or our national interests. I mean stable peace, which is firmly based on the principles of international law and the UN Charter.

Merezhko kept the faith even after Trump and Vice President J.D. Vance scolded Zelensky at the Oval Office. When I asked Merezhko today about the Trump administration freezing aid to Ukraine, he said he was in shock and saw Friday's disastrous White House visit in a different light. Because now I understand that it was not a coincidence. It was not like outburst of emotions. It was premeditated.

Trump needed an excuse or justification to blame Zelensky, to blame Ukraine, and to deprive us of this weaponry. Hanna Schellis, director of security studies at the Ukrainian PRISM Foreign Policy Council, wonders if the Trump team's decision came because of the

Kremlin is not offering any concessions. They need to blame that it is Ukrainians guilty in the whole situation rather than understanding that the demands of Russia and the actions of Russia are so strong. Zelensky responded by repeating his desire to work with the Trump administration on a peace deal that will last.

We want constructive cooperation and partnerships, and what happened in the White House instead of our negotiations is regrettable. But we need to find the strength to move on, to respect each other as we always respect America, Europe and all our partners, and do everything together to bring peace closer.

In Kiev, next to a memorial wall for fallen soldiers, history teacher Artur Babenko says he does not trust the Russians. He's from the occupied Ukrainian city of Melitopol. My professors at my university were captured and some are still in captivity.

There is torture and deportations of children to Russia. Olena Daineko, who runs an agricultural organization, says she's concerned what the pause in weapons will actually mean. I think every Ukrainian is worried about it. Of course, I'm worried because my husband also is an officer of Ukrainian army and many of my friends and colleagues are

Poland, which neighbors Ukraine, said the Trump administration did not inform allies that it would freeze the aid, about a billion dollars worth of weapons and ammunition already in the pipeline. Ukraine says it can manage with the military aid it already has, at least for a few months, and European leaders are stepping in to support Ukraine in the U.S.'s absence. But

Modeshko, the Ukrainian lawmaker, says he's also pinning his hopes on the American public. We should remember that Trump is not America, that America is much bigger, that America remains our allies. It's not kingdom where only will of king matters. No, it's democracy. Ukraine has too much at stake, he says, to see it any other way. Joanna Kikis, NPR News, Kyiv.

That's the state of the world from NPR. Thanks for listening.

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