Canadian Prime Minister Justin Trudeau has called on citizens to prioritise locally made products as his government imposes retaliatory tariffs on American goods in response to fresh trade restrictions by the United States.

A day after Washington imposed a 25 per cent tariff on Canadian exports, Ottawa introduced a similar duty on hundreds of US products while also announcing a mechanism to provide relief to affected businesses.

“Now is the time to choose products made right here in Canada. Check the labels. Let’s do our part. Wherever we can, choose Canada,” Trudeau said in a post on X, formerly Twitter.

The move comes after US President Donald Trump signed an executive order levying tariffs on imports from Canada and Mexico at 25 per cent, and those from China at 10 per cent. The White House has justified the measures as an attempt to curb illegal immigration and drug trafficking.

Mexico has also retaliated with countermeasures against US goods, heightening concerns over a trade war among North American nations.

Relief mechanism

To mitigate the impact on domestic industries, Ottawa has introduced a "remission process," allowing businesses to apply for tariff relief or refunds. Officials stated that exemptions would be considered in cases where products are not available domestically or from alternative sources outside the US. Additional relief could also be granted in “exceptional circumstances” that pose severe risks to the Canadian economy.

“We want to preserve this relationship, but in the face of the unjustified US tariffs against Canadian goods, we are taking action to protect our economy, our workers, and our businesses. We will always stand for Canada,” Finance Minister Dominic LeBlanc said in a statement.

A senior Canadian official, speaking to Reuters, said Ottawa views the US tariffs as a violation of their free trade agreement and is exploring legal options. The official further stated that Canada’s counter-tariffs would have economic consequences, and the government is preparing additional measures to cushion the impact.