Canada announces retaliatory tariffs in response to US trade measures

Canada has announced to impose 25% tariffs on a range of U.S. imports in response to new trade measures announced by U.S. President Donald Trump, Prime Minister Justin Trudeau said on Saturday.

The move follows Trump’s decision to implement tariffs of 25% on Canadian and Mexican imports and 10% on Chinese goods, escalating trade tensions between the longstanding allies.

Speaking at a press conference in Ottawa, Trudeau confirmed that Canada would impose tariffs on C$155 billion ($107 billion) worth of U.S. goods. Duties on C$30 billion will take effect on Tuesday, coinciding with the implementation of Trump’s tariffs, while the remaining C$125 billion will be subject to levies within 21 days.

The Canadian tariffs will target a variety of American products, including beer, wine, bourbon, fruits, fruit juices—such as orange juice from Florida, clothing, sports equipment, and household appliances.

Trudeau warned that these measures, along with potential non-tariff actions related to critical minerals and energy procurement, would have economic repercussions for both countries.

“Tariffs against Canada will put American jobs at risk, potentially shutting down auto assembly plants and manufacturing facilities. They will raise costs for consumers, including food and gasoline”Trudeau said.

The U.S.-Canada trade relationship is one of the world’s largest, with the 9,000-km (5,600-mile) border facilitating over $2.5 billion in daily trade, primarily in energy and manufacturing.

In 2023, Canada exported nearly C$550 billion worth of goods and services to the U.S., accounting for more than three-quarters of its total exports. Energy and manufacturing represented 30% and 15% of these exports, respectively.

The trade dispute comes amid a turbulent period in Canadian politics. Trudeau, facing low approval ratings, has announced plans to step down after nearly a decade in office once the ruling Liberal Party selects a new leader.

Opinion polls suggest the opposition Conservative Party could secure a decisive victory in the next federal election.
During his address, Trudeau emphasized Canada’s historical alliance with the U.S. and encouraged citizens to support local industries in response to the tariffs.

“We didn’t ask for this, but we will not back down,” he said.