Canadian Prime Minister Justin Trudeau announced on Tuesday, March 4, 2025, that Canada has imposed 25% tariffs on $155 billion worth of U.S. imports in response to Washington’s latest trade measures.
This decision follows the United States’ move to implement 25% tariffs on products from Canada and Mexico, along with 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 set to be affected within 21 days.
Trump Administration’s Justification
The U.S. administration, led by President Donald Trump, has defended the tariffs as necessary to protect American jobs and manufacturing while also addressing illegal migration and drug trafficking.
However, experts warn that these measures could result in higher prices for consumers in the U.S. and abroad. The three affected nations—Canada, Mexico, and China—are among America’s top trading partners, raising concerns about a potential escalation into a broader trade war.
In addition to the 25% tariffs on Canadian and Mexican imports, the U.S. has also imposed a 10% tariff on Canadian energy products. The Trump administration has framed these tariffs as a crucial negotiating tool, with the president specifically citing the need to combat the opioid crisis, particularly the influx of fentanyl.
Trudeau, however, pushed back against this justification, stating that less than 1% of the fentanyl intercepted at the U.S. border originates from Canada. He described the tariffs as unjustified.
International Reactions and Economic Impact
Mexican President Claudia Sheinbaum echoed Trudeau’s concerns, criticizing the U.S. tariffs as lacking “motive, reason, or justification.” She announced plans to introduce her own “tariff and non-tariff measures,” with further details expected to be disclosed on Sunday.
Trudeau also pointed out Canada’s efforts to curb the flow of fentanyl during a month-long pause in U.S. tariffs. In addition to Canada’s retaliatory tariffs on $155 billion in American goods, Foreign Minister Mélanie Joly called the U.S. tariffs an “existential threat,” warning of substantial job losses.
Canadian 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 countries.
Meanwhile, China—now facing tariffs of 20% after Trump doubled an earlier levy—has vowed to fight any trade war to the “bitter end.” Beijing has announced its own countermeasures, including tariffs on a range of U.S. agricultural and food products.
As tensions continue to rise, global markets are closely monitoring the situation for potential economic repercussions.
