Canadian Prime Minister Justin Trudeau announced Saturday night that his government will retaliate against President Donald Trump’s decision to slap a 25% tariff on Canadian exports by enacting a reciprocal 25% tariff on $155 billion worth of U.S. goods. But the Prime Minister did not say whether the dollar amount reflected Canadian or U.S. dollars; if it reflected Canadian dollars, the American currency equivalent would be approximately $106 billion.
Trudeau’s announcement came just hours after Trump signed an executive order slapping new tariffs on imports from Canada, Mexico, and China. The order imposes a 25% tariff on imports from Canada and Mexico-except for Canadian energy products, which instead face a 10% tariff. Imports from China also have an additional tariff of 10%.
Trudeau said at a news conference that the tariffs on American goods would take effect immediately, with tariffs on $30 billion worth of products taking hold starting Tuesday-the same day the U.S. is to begin collecting tariffs on Canadian goods. The rest will be added in three weeks, he said, as companies need time to adjust and find new suppliers.
Tariffs Will Apply Across Wide Swath
He said the list of affected products would run the gamut of common consumer goods impacted by U.S. tariffs, from American beer, wine and bourbon to fruits, fruit juices-including orange juice-vegetables, perfume, clothing, shoes, household appliances, furniture, sports equipment and essential materials like lumber and plastics.
It spoke of the traditional relationship between Canada and the United States and how, if President Trump ever desired to usher in a “golden age” within America, it would be much better with the cooperation of Canada rather than taking punitive policies against it.
Appeal to the People of America
Trudeau also spoke directly to the American people – a line many leaders don’t often cross – saying Trump’s tariffs will hurt them, too. He said Canadians should stand firm and support the Canadian economy by buying Canadian, avoid trips to the United States and instead spend their holidays within Canada.
The White House had no immediate response to Trudeau’s comments.
International Reactions
Canada isn’t the only country threatening retaliation. In the case of the new Mexican tariff barriers, in an X message, the President of Mexico, Claudia Sheinbaum, ordered Mexico’s Secretary of the Economy to put into action “Plan B”-tariffs and non-tariff measures against the protection of Mexico’s economy. Sheinbaum strongly condemned the tariffs and rejected U.S. claims of Mexican government ties to criminal organizations, insisting that Mexico is committed to combating fentanyl trafficking and working collaboratively with the U.S. under principles of mutual trust and respect for sovereignty.
China also lodged representations, with the Commerce Ministry saying it would send a complaint to the WTO and implement corresponding countermeasures against the U.S. move to protect its legitimate economic interests. “China urges the U.S. side to correct its approach, engage in open dialogue, and seek solutions via consultations in a mutual respect and benefit manner,” it said in a statement.
China’s Foreign Ministry spokesperson, Mao Ning, stressed that China has supported U.S. efforts to combat the fentanyl crisis and engaged in broad cooperation on counter-narcotics efforts; she called for continued collaboration, not escalation of tensions.
Economic Consequences
These retaliatory tariff moves have the potential to increase consumer prices both in the US and abroad on items ranging from food and electronics to automobiles. Others say the policy could have a broader spillover into areas such as national security and public health efforts between the trading partners.
Trump’s Justification
Trump had cited illegal immigration and trafficking of fentanyl as reasons for the tariffs in a post on Truth Social. But according to data from U.S. Customs and Border Protection, the vast majority of seizures of the illicit drug come across the southern border – not the northern border with Canada.
It includes Canada, Mexico, and China, per the Office of the U.S. Trade Representative. While both Mexico and Canada have traditionally had very solid economies with the U.S., this could be yet another strain on those ties with Trump’s new policy move.
The new volley of tariffs extends Trump’s threat of higher tariffs on imported goods, including the threatened blanket tariff of 20% on all imports and a tariff of 60% on Chinese products. Trump first slapped tariffs on China during his first term, which incited a retaliatory trade war. Experts say renewed tariff escalation can be much more consequential for the overall economy than a simple trade fight and would reverberate across international diplomacy and security cooperation.
Trade War Renewed: Canada Announces Retaliation Against US with 25% Tariff
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