Canadian Prime Minister Justin Trudeau announced on Saturday that Canada will impose 25% tariffs on C$155 billion ($106.5 billion) worth of U.S. goods in response to President Donald Trump’s sweeping tariffs on Canadian imports.
The tariffs will be rolled out in two phases:
- C$30 billion ($20.6 billion) will take effect Tuesday, February 6
- The remaining C$125 billion ($86 billion) will be implemented in 21 days
READ: Mexico Strikes Back: Retaliatory Tariffs Imposed On U.S. After Trump’s Trade Move
The move comes just hours after Trump signed an executive order slapping 25% tariffs on all imports from Canada and Mexico, excluding Canadian energy products, which will be subject to a 10% duty.
Trudeau strongly condemned the U.S. tariffs, arguing they will inflict damage on both economies and urging Canadians to rally behind domestic businesses.
He also warned that Canada is considering additional non-tariff measures, including policies affecting critical minerals, energy procurement, and other strategic partnerships.
READ: Trump Signs Sweeping Tariffs On Mexico, Canada, And China
Trump’s tariffs, which take effect on Tuesday, February 6, are intended to pressure Canada and Mexico into stronger action against fentanyl smuggling while also aligning with his protectionist economic stance aimed at boosting U.S. manufacturing.
The White House has warned that any retaliatory measures by Canada or Mexico could trigger further U.S. trade penalties, escalating tensions between North America’s top trading partners.
Trade experts warn that the tit-for-tat tariffs could have serious economic consequences, particularly for key industries like agriculture, automotive manufacturing, and energy.
Canada is the largest export market for U.S. goods, and a full-blown trade war could lead to:
- Higher costs for consumers in both countries
- Disruptions in supply chains affecting industries from farming to car manufacturing
- Potential job losses in sectors dependent on cross-border trade
With both countries digging in, businesses and consumers on both sides of the border brace for impact. The coming weeks will be critical in determining whether diplomatic negotiations can de-escalate tensions—or if this economic standoff will spiral further.
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