Canada’s Prime Minister, Justin Trudeau, has announced retaliatory tariffs in response to President Donald Trump’s new trade levies, imposing a 25% duty on a broad range of U.S. imports.
During a news conference, Trudeau stated that the tariffs would apply to C$155 billion ($107 billion) worth of U.S. goods. The first phase, covering C$30 billion, will take effect on Tuesday, coinciding with the implementation of Trump’s tariffs. The remaining C$125 billion in duties will be enforced within 21 days.
As tensions escalate between the long-standing allies, who share the world’s longest land border, Trudeau warned that Trump’s actions would have significant repercussions for Americans.
“Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities,” Trudeau stated, addressing U.S. citizens.
“They will raise costs for you, including food at the grocery store and gas at the pump.”
Rising Trade War Concerns
Trudeau’s announcement came just hours after Trump imposed 25% tariffs on Canadian and Mexican imports and 10% on goods from China, a move economists warn could slow global growth and increase inflation risks.
Key details of Trump’s tariff policy include:
• A 10% tariff on all energy imports from Canada.
• Additional Canadian tariffs on U.S. beer, wine, bourbon, fruits, and fruit juices, including orange juice from Trump’s home state of Florida.
• Duties on American clothing, sports equipment, and household appliances.
The U.S.‘s largest trading partners—Canada, Mexico, and China—are now responding to Trump’s trade measures. The Trump administration plans to enforce a 25% tariff on goods from Canada and a 10% tariff on Canadian energy products starting Tuesday. Mexican goods will face a 25% tariff, while imports from China will be subject to a 10% duty.
Trump defends these tariffs as necessary to “protect Americans” and vows to maintain them until what he describes as a national emergency concerning illicit drugs, fentanyl, and undocumented migration is resolved.
Global Reactions and Economic Impact
Mexico’s President Claudia Sheinbaum has also announced retaliatory tariffs, while China has promised “countermeasures,” arguing that the U.S. tariffs violate World Trade Organization (WTO) regulations.
Key trade statistics highlight the potential impact of these measures:
• According to the UN Commodity Trade Statistics Database (Comtrade), trade accounts for 70% of both Canada’s and Mexico’s GDP.
• Canada sends 78% of its annual $567 billion in exports to the U.S., while 80% of Mexico’s $593 billion in exports also go to the U.S.
• By contrast, the U.S. imports $3.17 trillion worth of goods annually, with only 14% coming from Canada and 15% from Mexico, leaving it with a wider range of alternative trading partners.
As global economic uncertainties grow, the escalating trade war between the U.S. and its closest allies could have far-reaching consequences for businesses, consumers, and international trade stability.