Canada has launched a trade war against its closest ally, the United States, with Prime Minister Justin Trudeau announcing 25% retaliatory tariffs on $155 billion worth of American goods in response to President Donald Trump’s new import taxes.
Trump signed an emergency order imposing 25% tariffs on most Canadian imports and 10% levies on Canadian energy, effective February 4 at 12:01 a.m. ET. Trudeau, after consultations with his cabinet and provincial leaders, declared that Canada will not back down, vowing to protect Canadian jobs and industries.
The Canadian tariffs will be implemented in two phases: $30 billion worth of U.S. goods will face tariffs immediately on Tuesday.
The remaining $125 billion will be taxed after 21 days, allowing businesses to adjust.
The retaliatory measures will target everyday American products such as beer, wine, bourbon, fruits, juices, vegetables, perfumes, clothing, household appliances, furniture, and sports equipment. Canada is also considering non-tariff measures, including restrictions on critical minerals, energy, and government procurement partnerships.
Trudeau emphasized the longstanding alliance between Canada and the U.S., highlighting joint efforts in World War II, post-9/11 aid, and wildfire assistance in California. He criticized the U.S. decision, calling it divisive rather than unifying.
While he has not yet spoken to Trump since the latter’s January 20 inauguration, Trudeau expressed hope for dialogue in the coming days, stating: “We’ve solved big issues before, and we will solve them again.”
