Canada has announced retaliatory tariffs on U.S. imports in response to President Donald Trump’s decision to impose 25% duties on Canadian goods, Prime Minister Justin Trudeau said on Saturday. The move marks a significant escalation in trade tensions between the two longtime allies, who share the world’s longest land border and a deeply integrated economic relationship.
“Tariffs against Canada will put American jobs at risk, potentially shutting down auto assembly plants and other manufacturing facilities,” Trudeau said, addressing U.S. citizens directly. “They will raise costs for you, including food at the grocery store and gas at the pump.”
The Canadian tariffs will target a wide range of U.S. products, including beer, wine, bourbon, fruits, fruit juices, clothing, sports equipment, and household appliances. Notably, orange juice from Florida, Trump’s home state, is among the targeted items.
Trudeau’s announcement came hours after Trump ordered 25% tariffs on Canadian and Mexican imports and 10% tariffs on Chinese goods, a move economists warn could trigger a global trade war, slow economic growth, and reignite inflation. Trump also announced a 10% tariff on all energy imports from Canada, further straining bilateral relations.
The Prime Minister acknowledged that the coming weeks would be challenging for Canadians but emphasized that Americans would also feel the impact of Trump’s policies. “We didn’t ask for this, but we will not back down,” Trudeau declared.
The U.S.-Canada border, spanning 9,000 kilometers (5,600 miles), facilitates over 2.5billionindailytrade,particularlyinenergyandmanufacturing.In2023,CanadaexportednearlyC2.5billionindailytrade,particularlyinenergyandmanufacturing.In2023,CanadaexportednearlyC550 billion worth of goods and services to the U.S., accounting for over 75% of its total exports. Energy made up 30% of these exports, while manufacturing contributed approximately 15%.
Exports to the U.S. represent roughly 17.8% of Canada’s GDP and support more than 2.4 million Canadian jobs. The trade dispute comes at a delicate time for Trudeau, who is grappling with low approval ratings and a leadership race within his Liberal Party. He has announced plans to resign after nine years in office once a new party leader is chosen. Recent polls suggest the opposition Conservatives could win the next election by a significant margin.
Flanked by Finance Minister Dominic LeBlanc, Foreign Affairs Minister Melanie Joly, and Public Safety Minister David McGuinty, Trudeau struck a somber tone as he reflected on the historical ties between the two nations.
“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,” he said. “We’ve built the most successful economic, military, and security partnership the world has ever seen.”
Trudeau urged Canadians to support domestic industries by purchasing Canadian products and vacationing at home rather than in the U.S. He also hinted at potential non-tariff measures, including restrictions on critical minerals, energy procurement, and other strategic partnerships.
As the trade dispute escalates, both nations face the risk of significant economic fallout. Economists warn that prolonged tensions could disrupt supply chains, increase consumer prices, and undermine the strong economic partnership that has defined U.S.-Canada relations for decades.