On Saturday evening, Canada’s Prime Minister, Justin Trudeau, announced that Canada would impose a similar 25% tariff on U.S. goods following President Donald Trump’s decision to levy a 25% tariff on Canadian exports to the United States. Trudeau specified that these tariffs would be applied to $155 billion worth of American goods, though he didn’t clarify whether this figure referred to Canadian or U.S. dollars. For context, $155 billion Canadian equals roughly $106 billion U.S.
Trudeau’s announcement came shortly after Trump signed an executive order introducing tariffs on imports from Canada, Mexico, and China. The order set a 25% tariff on goods from Canada and Mexico, with a 10% tariff on Canadian energy products, and an additional 10% on Chinese imports.
During his Saturday night press conference, Trudeau shared that the tariffs on U.S. products would start immediately with $30 billion worth introduced by Tuesday, aligning with when the U.S. tariffs on Canadian goods would begin. The remainder would come into effect after about three weeks to give Canadian businesses time to explore alternative suppliers.
“Our response will mirror the American measures, impacting everyday items such as American beer, wine, bourbon, fruits, and even vegetables,” Trudeau noted. “We’ll also cover consumer staples like household appliances, furniture, sports equipment, as well as materials like lumber and plastics, and more.”
Despite the tensions, Trudeau highlighted the longstanding alliance between Canada and the U.S., suggesting that partnership rather than punitive measures would better benefit both nations. He addressed the American public directly, warning that Trump’s actions would have substantial repercussions for them too.
Trudeau also encouraged Canadians to support domestic products and consider spending their vacations within Canada as a way of showing solidarity.
The U.S. White House has yet to comment on Trudeau’s announcement. Meanwhile, Mexico might soon join Canada in imposing its own reciprocal tariffs. Mexican President Claudia Sheinbaum recently instructed her economy minister to activate “Plan B,” incorporating both tariff and non-tariff actions to protect Mexico’s interests.
Sheinbaum strongly opposed the allegations from the White House linking Mexico with criminal organizations, labeling them defamatory. She stressed that Mexico is equally committed to preventing fentanyl trafficking, and emphasized the need for a cooperative approach with the U.S., founded on shared responsibilities and mutual respect.
China has also responded vehemently. The Ministry of Commerce announced plans to challenge the U.S. at the World Trade Organization while calling for more dialogue and cooperation based on mutual respect and benefits.
So far, neither the Chinese embassy in the U.S. nor China’s Foreign Ministry has issued an immediate response. However, earlier this week, China’s Foreign Ministry representative, Mao Ning, reiterated China’s commitment to counternarcotics collaboration with the U.S., emphasizing notable achievements in this area.
The back-and-forth tariff threats are likely to affect consumer prices both in the U.S. and globally, touching on everything from food to cars and electronics.
In response, Trump justified his tariff actions on Truth Social, citing concerns over “the major threat of illegal aliens and deadly drugs, including fentanyl.”
According to U.S. Customs and Border Protection data, most fentanyl seizures have occurred along the U.S.-Mexico border, not the northern border shared with Canada.
China, Mexico, and Canada are top import sources for the U.S. and have long-standing economic ties with America, as stated by the Office of the U.S. Trade Representative. Trump’s executive order follows his earlier campaign promises to impose sweeping tariffs on imports, aiming for more profound changes in trade relations. During his first term, Trump’s tariffs on China led to reciprocal measures, escalating into what was dubbed a “trade war.” Experts caution that another tariff round could ripple beyond economic impacts, affecting everything from national security to joint health initiatives.
