Canada has escalated trade tensions with the United States, as Prime Minister Justin Trudeau announced 25% retaliatory tariffs on $155 billion worth of American goods in response to President Donald Trump’s new import taxes.
Trump signed an emergency order imposing 25% tariffs on most Canadian imports and a 10% levy on Canadian energy, effective February 4 at 12:01 a.m. ET. Following consultations with his cabinet and provincial leaders, Trudeau vowed to defend Canadian jobs and industries, asserting that Canada would not back down.
The Canadian tariffs will roll out in two phases: $30 billion worth of U.S. goods will face immediate tariffs on Tuesday, while the remaining $125 billion will be taxed after 21 days, allowing businesses time to adapt.
The targeted products include everyday American goods such as beer, wine, bourbon, fruits, juices, vegetables, perfumes, clothing, household appliances, furniture, and sports equipment. Additionally, Canada is weighing non-tariff measures, including restrictions on critical minerals, energy, and government procurement deals.
Trudeau underscored the deep-rooted ties between Canada and the U.S., citing their cooperation in World War II, post-9/11 aid, and wildfire relief efforts in California. He criticized the U.S. tariffs as divisive rather than unifying.
Although he has not yet spoken to Trump since his January 20 inauguration, Trudeau expressed optimism about potential discussions, stating, “We’ve solved big issues before, and we will solve them again.”
