Canadian Prime Minister Justin Trudeau has announced that his government would impose 25 per cent tariffs on American goods worth 155 billion Canadian dollars in response to US President Donald Trump’s decision to levy 25 per cent duties on all imports from Canada, effective Tuesday.
Addressing a press conference on Saturday, Trudeau criticised the US tariffs as a blatant violation of a recently negotiated free trade agreement.
“Tariffs will have real consequences for the American people. This will include immediate tariffs on C$30 billion worth of goods as of Tuesday. This will be followed by further tariffs on C$125 billion worth of American products in 21 days' time,” he declared.
The Canadian Prime Minister indicated that additional measures were being considered, including non-tariff actions related to critical minerals, energy procurement, and other bilateral partnerships.
The move follows Trump's executive order on Saturday, which placed duties of 10 per cent on all imports from China and 25 per cent on those from Mexico and Canada.
Energy imports from Canada, such as oil, natural gas, and electricity, were subjected to a lower 10 per cent duty.
In a social media post, Trump defended his decision, stating that the tariffs were essential to protect American interests.
“The order includes a mechanism to escalate rates if countries retaliate. Our aim is to end unfair trade practices and protect American workers,” he insisted.
Mexico joins retaliation
Mexico, too, announced retaliatory tariffs against the US, with President Claudia Sheinbaum remarking, “Nothing by force; everything by reason and right.”
She expressed disappointment over Trump's decision, which she described as counterproductive to diplomatic engagements on migration and trade.
At a public event earlier in the day, Sheinbaum said, “Problems are not resolved by imposing tariffs, but by talking and dialoguing.”
She instructed Mexico’s Secretary of Economy to activate a contingency plan that includes tariff and non-tariff measures in defence of national interests.
Read more: Trump slaps 25% tariff on Canada, Mexico; 10% on China
Canada's forceful stance
Trudeau expressed concern over the potential economic standoff, acknowledging that the “next few weeks will be difficult for Canadians and Americans alike.”
Nonetheless, he asserted Canada’s readiness to stand firm. “
This trade action by the Americans and our response will have real consequences for people and workers on both sides of our border. We don’t want this. We didn’t ask for this. But we will not back down in standing up for Canadians,” he affirmed.
The Canadian Premier revealed ongoing consultations with Mexican President Claudia Sheinbaum and meetings with provincial leaders. “We did not want this, but Canada is prepared,” he added.
Ontario Premier Doug Ford lent his support to the federal government’s response. “Canada now has no choice but to hit back and hit back hard,” Ford said.
He emphasised the country's leverage in sectors critical to American industry, including nickel, uranium, potash, aluminium, and energy.
In Nova Scotia, Premier Tim Houston announced the immediate removal of all US alcohol products from the province’s store shelves, symbolising a hardline stance against the tariffs.
Economic fallout
Experts have warned that the tariffs could lead to inflationary pressures and disrupt trade between the three largest economies in North America.
The situation may escalate as Trump's executive order permits rate increases if retaliatory measures are implemented.
Trudeau and Sheinbaum both expressed disappointment over Trump's continued justification of tariffs as a measure to curb illegal immigration and drug trafficking.
Trump defended his decision, stating, “No one—on either side of the border—wants to see American tariffs on Canadian goods... Until such time as they stop drugs like fentanyl, it is time for them to pay a very big price!”
Despite warnings of a looming trade war, Trump remains resolute in fulfilling his campaign commitments to “protect American jobs” and address what he termed a “national emergency” involving fentanyl and illegal immigration.
White House officials have indicated that the tariffs will remain in place until the “crisis alleviates,” although no specific criteria for lifting them have been outlined.
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