Canada has unveiled retaliatory tariffs against the United States in response to President Donald Trump. Prime Minister Justin Trudeau announced comprehensive tariffs set at 25%, impacting approximately 155 billion Canadian dollars (around $106.6 billion or £86 billion) worth of American goods, which include a wide range of products from beer and wine to household appliances and sporting goods.
This response mirrors the 25% tariff imposed by US President Donald Trump on imports from Canada and Mexico, alongside an additional 10% on Chinese goods, stemming from his administration’s concerns over illegal immigration and drug trafficking.
“We will not back down in defending the interests of Canadians,” Trudeau emphasized during a news conference, while cautioning that there would be tangible repercussions for individuals on both sides of the border. He expressed regret over the situation, stating, “We didn’t ask for this.”
The initial tariffs, affecting $30 billion worth of US goods, are set to take effect on Tuesday, with an additional $125 billion in tariffs anticipated within 21 days to allow Canadian businesses time to adapt. The targeted American products include beer, wine, bourbon, fruits and vegetables, clothing, footwear, household appliances, sporting goods, and furniture. Additionally, levies will be applied to lumber and plastics, with non-tariff measures under consideration for critical minerals and procurement.
Economists warn that the introduction of these import taxes by the US and the subsequent Canadian response—along with similar actions from Mexico and China—could lead to increased prices on a broad spectrum of consumer goods.
A tariff is a tax imposed on goods as they enter a country, calculated as a percentage of the import’s value. The potential for heightened tariffs on imports into the US has raised concerns among global leaders, as it could significantly raise costs for companies trying to sell their products in the world’s largest economy.
Christopher Sands, director of the Wilson Center’s Canada Institute, remarked that the tit-for-tat tariffs between the US and Canada represent “mutually assured destruction,” with immediate consequences for the populace. He dismissed the notion of an adjustment period, indicating that the impact would be swift and severe, making life more challenging for many.
Notably, Canada is the largest foreign supplier of crude oil to the US, with recent trade figures showing that 61% of oil imported into the US from January to November of the previous year came from Canada. While Canadian goods face a 25% tariff, the energy sector is subject to a lower 10% levy.
