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Canada Retaliates Against Trump Tariffs With 25% Levies On U.S. Imports, Declares Readiness For Trade War

Speaking at a news conference, Trudeau detailed that Canada would impose tariffs on C$155 billion ($107 billion) worth of U.S. goods, Reuters reports.

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Canada has announced 25% tariffs on a range of U.S. imports in response to President Donald Trump’s new trade measures, Prime Minister Justin Trudeau said on Saturday, cautioning Americans about the consequences of Trump’s actions.

Speaking at a news conference, Trudeau detailed that Canada would impose tariffs on C$155 billion ($107 billion) worth of U.S. goods, Reuters reports.

The first phase, covering C$30 billion, will take effect on Tuesday, coinciding with Trump’s tariffs, while duties on the remaining C$125 billion will follow in 21 days.

Trudeau’s announcement came shortly after Trump ordered 25% tariffs on Canadian and Mexican imports and 10% on goods from China, raising fears of a global trade war.

Trump also stated he would impose a 10% tariff on all energy imports from Canada.

The Canadian leader outlined that American beer, wine, bourbon, fruits, and fruit juices, including Florida’s orange juice, would be among the targeted goods.

Other affected imports include clothing, sports equipment, and household appliances.

“Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities,” Trudeau said, addressing U.S. citizens.

“They will raise costs for you, including food at the grocery store and gas at the pump.”

Canada is also considering non-tariff measures, possibly involving critical minerals and energy procurement, Trudeau added.

The 9,000-km (5,600-mile) U.S.-Canada border facilitates over $2.5 billion in daily trade, particularly in energy and manufacturing.

Canada exported nearly C$550 billion worth of goods and services to the U.S. in 2023, making up over three-fourths of its total exports. Energy accounted for 30%, and manufacturing contributed around 15%.

Exports to the U.S. represent approximately 17.8% of Canada’s GDP and support over 2.4 million jobs.

The tariffs come amid a political crisis and leadership race within Trudeau’s Liberal Party. Facing low approval ratings, Trudeau has announced his resignation after nine years in office, with polls suggesting a likely Conservative victory in the next election.

“From the beaches of Normandy to the mountains of the Korean Peninsula, from the fields of Flanders to the streets of Kandahar, we have fought and died alongside you during your darkest hours,” he said.

“We’ve built the most successful economic, military and security partnership the world has ever seen.”

Trudeau urged Canadians to support domestic businesses and tourism.

“We didn’t ask for this, but we will not back down,” he declared.

Also, in a post on his X account, Trudeau said Canada is prepared for the trade war.

“The United States has confirmed that it intends to impose 25% tariffs on most Canadian goods, with 10% tariffs on energy, starting February 4,” he wrote.

“I’ve met with the Premiers and our Cabinet today, and I’ll be speaking with President Sheinbaum of Mexico shortly.

“We did not want this, but Canada is prepared. I’ll be addressing Canadians later this evening.”

 

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