Canada to impose counter-tariffs on US
1. PM Justin Trudeau urges Canadians to buy Canadian products and vacation at home rather than in US
Canada Imposes 25% Tariffs on US Imports in Retaliation to Trump’s Trade Move
OTTAWA: Canada has announced 25% tariffs on imports from the United States in response to President Donald Trump’s decision to impose tariffs on Canadian goods entering the U.S.
Relations between the long-time allies have hit a new low, with Canadian Prime Minister Justin Trudeau warning Americans that Trump’s actions will have real consequences for them.
At a press conference, Trudeau announced tariffs on C$155 billion ($107 billion) worth of U.S. goods, with duties on C$30 billion taking effect immediately on Tuesday—coinciding with Trump’s tariffs—and the remaining C$125 billion following in 21 days.
The move came hours after Trump ordered 25% tariffs on Canadian and Mexican imports and 10% on goods from China, escalating fears of a trade war that economists warn could slow global growth and increase inflation. Additionally, Trump stated he would impose a 10% tariff on all energy imports from Canada.
Targeted U.S. Products
Trudeau outlined that the Canadian tariffs will apply to American beer, wine, bourbon, and fruit juices—including orange juice from Florida, Trump’s home state. Other affected goods include clothing, sports equipment, and household appliances.
Addressing U.S. citizens directly, Trudeau cautioned that Trump's tariffs would backfire.
“Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities,” Trudeau stated. “They will raise costs for you, including food at the grocery store and gas at the pump.”
Considering Additional Measures
Canada is also exploring non-tariff measures, including restrictions on critical minerals, energy procurement, and other strategic partnerships.
The 9,000-kilometer U.S.-Canada border handles over $2.5 billion in trade daily, particularly in energy and manufacturing, according to 2023 Canadian government data. That year, Canada exported C$550 billion in goods and services to the U.S., representing three-fourths of its total exports, with energy making up 30% and manufacturing 15%. Trade with the U.S. accounts for 17.8% of Canada’s GDP and supports over 2.4 million Canadian jobs.
Political Fallout in Canada
The tariffs come as Canada faces domestic political turmoil and a leadership race within Trudeau’s Liberal Party. With low approval ratings, Trudeau has announced he will step down after nine years in office once a new party leader is chosen. Recent polls suggest the opposition Conservatives are poised for a decisive victory in the next election.
Flanked by his foreign affairs and finance ministers, Trudeau reflected on the decades-long alliance between Canada and the U.S.:
“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.
“We’ve built the most successful economic, military, and security partnership the world has ever seen,” he added.
Encouraging Canadians to support domestic products and vacation within Canada instead of traveling to the U.S., Trudeau made it clear that Canada will not back down.
“We didn’t ask for this, but we will not back down,” the Prime Minister affirmed.
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