Canada Imposes Retaliatory Tariffs on Longstanding Ally, the U.S
Canada Strikes Back with 25% Tariffs on U.S. Imports Amid Rising Trade Tensions
Prime Minister Justin Trudeau announced Saturday that Canada will impose 25% tariffs on a range of U.S. imports in retaliation against President Donald Trump’s new trade measures. Warning of significant economic consequences, Trudeau stated that the tariffs, affecting C$155 billion ($107 billion) worth of American goods, would be implemented in two phases: C$30 billion taking effect on Tuesday, the same day as Trump’s tariffs, and the remaining C$125 billion within three weeks.
The move comes after Trump ordered steep levies on Canadian, Mexican, and Chinese imports—25% on steel and 10% on other goods—raising fears of a global trade war. Trump also announced a 10% tariff on all energy imports from Canada, a key sector in cross-border trade.
Canada’s retaliatory tariffs will target U.S. beer, wine, bourbon, fruits, fruit juices—including Florida’s orange juice—as well as clothing, sports equipment, and household appliances. Trudeau cautioned that while Canadians would face economic hardship, American industries would also suffer, with potential job losses in auto manufacturing and rising consumer prices for food and gas.
Beyond tariffs, Canada is considering additional non-tariff measures, including restrictions on critical minerals and energy partnerships.
The 9,000-km (5,600-mile) U.S.-Canada border facilitates over $2.5 billion in daily trade, with energy and manufacturing as major contributors. Canadian exports to the U.S., valued at nearly C$550 billion in 2023, account for about 17.8% of Canada’s GDP and support more than 2.4 million jobs.
The tariffs come amid political uncertainty in Canada, as Trudeau—facing low approval ratings—has announced he will step down once a new Liberal Party leader is chosen. The opposition Conservatives are currently leading in the polls.
Reflecting on Canada’s long-standing alliance with the U.S., Trudeau invoked historical military partnerships and urged Canadians to support domestic industries by purchasing Canadian-made goods and vacationing within the country.
“We didn’t ask for this, but we will not back down,” Trudeau declared.
