Canada will impose 25% tariffs on a range of U.S. imports in response to President Donald Trump’s new trade measures, Prime Minister Justin Trudeau announced Saturday, warning that American businesses and consumers will feel the impact.
As relations between the long-time allies deteriorate, Trudeau said Canada is levying tariffs on C$155 billion ($107 billion) worth of U.S. goods. Duties on C$30 billion will take effect Tuesday, coinciding with Trump’s tariffs, while additional levies on C$125 billion will follow in three weeks.
The move comes hours after Trump ordered 25% tariffs on Canadian and Mexican imports and 10% duties on goods from China, raising fears of a global trade war. Trump also announced a 10% tariff on all energy imports from Canada.
In response, Trudeau outlined a list of targeted American products, including beer, wine, bourbon, and fruit juices, particularly orange juice from Florida, Trump’s home state. Other affected goods include clothing, sports equipment, and household appliances.
Trudeau acknowledged the coming economic strain on Canadians but warned that Trump’s policies would also hurt American workers and consumers.
“Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities,” Trudeau said in a press conference in Ottawa. “They will raise costs for you, including food at the grocery store and gas at the pump.”
Beyond tariffs, Canada is exploring non-tariff actions, potentially impacting critical minerals, energy procurement, and other economic partnerships, Trudeau said.
The U.S.-Canada border, spanning 9,000 kilometers (5,600 miles), facilitates over $2.5 billion in daily trade, particularly in energy and manufacturing, according to 2023 government data. Canada exported nearly C$550 billion worth of goods and services to the U.S. last year, accounting for over three-fourths of its total exports. Energy represented 30% of those exports, while manufacturing made up about 15%.
Exports to the U.S. contribute roughly 17.8% of Canada’s GDP and sustain over 2.4 million Canadian jobs.
The tariff dispute comes amid political turbulence in Canada, as Trudeau faces declining approval ratings and has announced plans to resign after nearly nine years in office. His Liberal Party is preparing for a leadership transition, while polls indicate the opposition Conservatives could win the next election with a significant majority.
Flanked by his foreign affairs and finance ministers, a solemn Trudeau invoked Canada’s historic alliance with the U.S.
“From the beaches of Normandy to the mountains of the Korean Peninsula, from the fields of Flanders to the streets of Kandahar, we have fought and died alongside you during your darkest hours,” he said. “We’ve built the most successful economic, military, and security partnership the world has ever seen.”
Trudeau urged Canadians to prioritize domestic products and vacation within Canada rather than in the U.S.
“We didn’t ask for this, but we will not back down,” he said.
