Canada will impose 25 per cent immediate retaliatory tariffs on American goods worth $30 billion starting Tuesday in the wake of U.S. President Donald Trump’s move to slap Canada with similar devastating duties.
Prime Minister Justin Trudeau said an additional $125 billion in duties on American products will follow in 21 days, allowing Canadian consumers and supply chains to find alternatives.
Trudeau’s announcement comes just hours after Trump slapped Canada with 25 per cent tariffs on all goods and 10 per cent tariffs on oil, natural gas and electricity, also scheduled to take effect on Tuesday.
Trudeau elected to go ahead with retaliatory tariffs even though Trump’s order includes a mechanism to escalate the rates if Canada retaliates against the U.S.
Trudeau did not answer whether Canada would consider cutting energy supplies to the United States in the face of 25 per cent tariffs.
He instead said any measures that involve one region of the country more than others will be done “carefully” and with the full partnership of regional leaders.
The prime minister used the announcement to speak directly to Americans, whom he called “our closest friends and neighbours,” pointing out the consequences for both countries.
“This is a choice that will harm Canadians, but beyond that, it will have real consequences for you, the American people. Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing plants. They will raise costs for you, including food at the grocery stores and gas at the pump.”
The tariffs risk an economic standoff with America’s two largest trading partners in Mexico and Canada, setting up a showdown in North America that could potentially sabotage economic growth.
The Trump administration says it put the tariffs in place to force China, Mexico and Canada to stop the spread and manufacturing of fentanyl, in addition to pressuring Canada and Mexico to limit any illegal immigration into the United States.
A senior U.S. government official did not provide specific benchmarks that could be met to lift the new tariffs, saying only that the best measure would be fewer Americans dying from fentanyl addiction.
Trudeau previously announced Canada would spend $1.3 billion on a border plan that includes helicopters, new canine teams and imaging tools to address Trump’s calls on border security.
Files from The Canadian Press and Associated Press were used in this report
