Canada Retaliates with Tariffs on U.S. Imports Amid Trade War

Canada is hitting back against President Donald Trump’s new tariffs with 25% levies on U.S. goods, Prime Minister Justin Trudeau announced. The tariffs, covering C$155 billion ($107 billion) in imports, will take effect in two phases—C$30 billion immediately and the rest within 21 days.

Trump’s decision to impose 25% tariffs on Canadian and Mexican imports and 10% on Chinese goods has sparked fears of a global trade war. He also ordered a 10% tariff on all energy imports from Canada. In response, Canada’s tariffs will target U.S. beer, wine, bourbon, fruits, juices, clothing, sports equipment, and household appliances.

Trudeau warned Americans that the tariffs could harm U.S. jobs, increase manufacturing costs, and raise food and gas prices. “Tariffs against Canada will put your jobs at risk, potentially shutting down American auto plants and manufacturing,” he said. He also urged Canadians to support local products and travel domestically instead of visiting the U.S.

Canada is also exploring non-tariff measures related to critical minerals and energy procurement. Trade between the two countries exceeds $2.5 billion daily, with Canada exporting C$550 billion to the U.S. in 2023, accounting for 17.8% of its GDP and 2.4 million jobs.

The tariffs come at a politically sensitive time for Trudeau, who faces low approval ratings and has announced plans to resign. The opposition Conservatives are favored to win the next election, according to polls.

Despite tensions, Trudeau emphasized the deep economic and military ties between the nations. “We didn’t ask for this, but we will not back down,” he stated.