Canadian Prime Minister Justin Trudeau announced on Tuesday that Canada has imposed 25% tariffs on $155 billion worth of US imports in response to Washington’s latest trade measures.
This move follows the United States’ decision to implement 25% tariffs on products from Canada and Mexico, alongside increased levies on goods from China.
Trudeau, speaking on X (formerly Twitter), stated, “The moment U.S. tariffs came into effect this morning, so did the Canadian response. Canada will be implementing 25% tariffs against $155 billion of American products.”
He added that $30 billion worth of goods would be targeted immediately, with the remaining $125 billion to follow in 21 days.
Trump’s administration
The US administration, led by President Donald Trump, justified the tariffs as a measure to protect American jobs and manufacturing while addressing illegal migration and drug trafficking.
- However, experts warn that these actions could lead to higher prices for consumers both in the US and abroad. The three countries involved—Canada, Mexico, and China—are among America’s top trading partners, raising concerns about a potential wider trade war.
- In addition to the 25% tariffs on Canadian and Mexican imports, the US has imposed a 10% tariff on Canadian energy. Trump’s team has characterized these tariffs as a key negotiating tool, with the president citing the need to combat the opioid crisis, particularly the influx of fentanyl.
However, Trudeau countered that less than 1% of fentanyl intercepted at the US border originates from Canada, calling the tariffs unjustified.
What you should know
- Mexican President Claudia Sheinbaum echoed Trudeau’s sentiments, describing the US tariffs as lacking “motive, reason, or justification.” She announced plans to introduce her own “tariff and non-tariff measures,” with further details to be disclosed on Sunday.
- Trudeau highlighted Canada’s efforts to curb fentanyl flow during a month-long pause in the US tariffs. He also outlined Canada’s retaliatory measures, which include a 25% tariff on C$155 billion (US$107 billion; £84 billion) of American goods.
- Canadian Foreign Minister Mélanie Joly described the US tariffs as an “existential threat,” warning of significant job losses.
Immigration Minister Marc Miller estimated that up to one million Canadian jobs could be at risk due to the deeply interconnected trade relationship between the two nations.
Meanwhile China – which now faces tariffs of 20% after Trump doubled an earlier levy – has vowed to fight any trade war to the “bitter end”. It has announced its own counter-measures – including tariffs on a range of US agricultural and food products.