Canada has announced sweeping retaliatory tariffs on United States of America imports in response to President Donald Trump’s latest trade measures, Prime Minister Justin Trudeau said on Saturday, warning Americans about the economic fallout of the escalating trade conflict.
Speaking at a press conference, Trudeau outlined Canada’s plan to impose 25% tariffs on a range of U.S. products, covering C$155 billion ($107 billion) worth of goods.
The first round, affecting C$30 billion in imports, will take effect on Tuesday, coinciding with the implementation of Trump’s tariffs.
The remaining C$125 billion will be subjected to levies within three weeks.
The move follows Trump’s decision to slap 25% tariffs on Canadian and Mexican imports, along with 10% tariffs on Chinese goods, fueling concerns of a global trade war.
Trump also announced a separate 10% tariff on all Canadian energy imports.
Among the U.S. products facing Canadian tariffs are beer, wine, bourbon, fruits, and fruit juices, including Florida’s orange juice.
Other affected goods include clothing, sports equipment, and household appliances.
Addressing Americans directly, Trudeau cautioned that Trump’s tariffs would have severe economic consequences, potentially jeopardizing jobs in the U.S. auto and manufacturing industries while driving up consumer costs.
“Tariffs against Canada will put American jobs at risk, potentially shutting down auto assembly plants and other manufacturing facilities,” Trudeau said.
“They will make groceries more expensive and raise prices at the gas pump.”
Canada is also weighing additional countermeasures, including restrictions on critical minerals and energy procurement, Trudeau added.
The U.S.-Canada trade relationship is one of the world’s largest, with their shared border facilitating over $2.5 billion in daily trade, particularly in energy and manufacturing.
In 2023, Canada exported nearly C$550 billion worth of goods and services to the U.S., accounting for over three-quarters of its total exports.
Energy made up 30% of this figure, while manufacturing contributed around 15%.
Trudeau’s announcement comes at a politically turbulent time, as he prepares to step down following a leadership crisis in the Liberal Party.
With low approval ratings and polls favoring the opposition Conservatives, Trudeau has already announced his resignation after nine years in office.
Appealing to shared history, Trudeau referenced past military alliances between the two nations, underscoring Canada’s longstanding commitment to 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,” he said.
“We’ve built the most successful economic, military, and security partnership the world has ever seen.”
Calling on Canadians to rally behind domestic industries, Trudeau urged consumers to support local businesses and tourism.
“We didn’t seek this confrontation, but we won’t back down,” he declared.
In a social media post, Trudeau reaffirmed Canada’s preparedness for the trade war.
“The United States has confirmed that it intends to impose 25% tariffs on most Canadian goods, with 10% tariffs on energy, starting February 4,” he wrote.
“I’ve met with Premiers and our Cabinet today, and I’ll be speaking with President Sheinbaum of Mexico shortly. We did not want this, but Canada is prepared. I’ll be addressing Canadians later this evening.”
