Feb 02, Kathmandu- The US has been embroiled in a conflict with its neighbors after Donald Trump announced a 25 percent tariff on Canada and Mexico. In response, Canadian Prime Minister Justin Trudeau has announced a 25 percent tariff on $155 billion worth of US imports.

Trudeau said the new tariffs will apply to $30 billion in U.S. wine and fruit imports starting Tuesday. Similarly, $125 billion in imports will be affected later. U.S. tariffs are also being applied to imports from Canada starting Tuesday.

Previously, Trump imposed additional tariffs of 25 percent on Canada and Mexico and 10 percent on China from February 1.

Mexico also retaliated

Meanwhile, Mexican President Claudia Sheinbaum has also instructed her finance minister to impose retaliatory tariffs. She has also rejected Trump's accusations that Mexico is linked to criminal organizations.

Earlier, last Friday, White House spokeswoman Carolyn Levitt said that Trump would impose a 25 percent tariff on imports from Canada and Mexico and a 10 percent tariff on Chinese goods starting Saturday. She argued that the tariffs were necessary because drugs were flowing into the United States from these countries and millions of Americans were losing their lives.

Mexico's president has denied US allegations, saying they have seized more than 40 tons of drugs in the last four months and arrested more than 10,000 criminals.