Canada announces retaliatory 25% levies on US imports

Canadas PM Justin Trudeau speaks during a press conference while responding to US President Donald Trumps orders to impose 25% tariffs on Canadian imports, in Ottawa, Ontario, Canada on February 1, 2025. — Reuters
Canada’s PM Justin Trudeau speaks during a press conference while responding to US President Donald Trump’s orders to impose 25% tariffs on Canadian imports, in Ottawa, Ontario, Canada on February 1, 2025. — Reuters
  • Ottawa to impose C$155 billion ($107 billion) of US goods.
  • Those on C$30 billion goods will take effect on Tuesday.
  • Duties on remaining C$125bn will come in effect in 21 days.

OTTAWA: Responding to US President Donald Trump’s announcement of tariffs on its imports, Canada has said that it would retaliate against the move with 25% levies on a raft of US imports.

Relations between the long-time allies who share the world’s longest land border have reached a new low with Canadian Prime Minister Justin Trudeau warning Americans that Trump’s actions would have real consequences for them.

Speaking at a news conference, PM Trudeau he was slapping tariffs on C$155 billion ($107 billion) of US goods. Those on C$30 billion will take effect on Tuesday, the same day as Trump’s tariffs, and duties on the remaining C$125 billion in 21 days.

Trudeau’s announcement came just hours after Trump ordered 25% tariffs on Canadian and Mexican imports and 10% on goods from China, risking a trade war that economists say could slow global growth and reignite inflation.

Trump said he would impose a 10% tariff on all energy imports from Canada.

The Canadian leader said tariffs would include American beer, wine and bourbon, as well as fruits and fruit juices, including orange juice from Trump’s home state of Florida. Canada would also target goods including clothing, sports equipment and household appliances.

Trudeau said that the coming weeks would be difficult for Canadians, but that Americans would also suffer from Trump’s actions.

“Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities,” Trudeau said, addressing US citizens during a press conference in Ottawa.

“They will raise costs for you, including food at the grocery store and gas at the pump.”

Canada, Trudeau said, was considering non-tariff measures, potentially relating to critical minerals, energy procurement and other partnerships.

The 9,000 kilometre US-Canada border handles over $2.5 billion in trade a day, especially in energy and manufacturing, according to Canadian government data from 2023.

In 2023, Canada exported close to C$550 billion worth of goods and services to the US, or more than three-fourths of its total exports. Energy accounted for 30% and manufacturing contributed around 15% to exports south of the border.

Exports to the US accounts for roughly 17.8% of Canadian gross domestic product and more than 2.4 million jobs in Canada.

The tariffs hit Canada as it deals with a political crisis and a leadership race within Trudeau’s Liberal Party.

Facing low approval ratings, Trudeau has said he will resign after nine years in office once a new party leader is chosen. The opposition Conservatives could win the next election by a thumping majority, according to recent opinion polls.

Flanked by his foreign affairs and finance ministers a somber Trudeau recalled the years of bilateral relations between the two countries.

“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.

“We’ve built the most successful economic, military and security partnership the world has ever seen,” he said.

Trudeau encouraged Canadians to buy Canadian products and vacation at home rather than in the US.

“We didn’t ask for this but we will not back down,” the PM added.

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