Toronto, February 2, 2025: Canada has imposed retaliatory tariffs of 25% on $106.6 billion worth of US goods, including beer, wine, appliances, and sporting goods, marking the start of a trade war between the two nations. The move mirrors US President Donald Trump’s tariffs on Canadian, Mexican, and Chinese imports, citing concerns over illegal immigration and drug trafficking.
Prime Minister Justin Trudeau stated that the tariffs, affecting $30 billion in goods starting Tuesday, would be followed by another $125 billion in 21 days to allow businesses time to adjust. He emphasized standing firm for Canadians, but acknowledged the significant impact on both sides of the border.
Economists warn that the tariffs could lead to higher prices for consumers, particularly as the US and Canada share deeply integrated economies. Canada is a key supplier of crude oil to the US, and while 25% tariffs apply to most goods, Canadian energy exports face a 10% levy.
Trudeau rejected the US’s security concerns, noting that less than 1% of fentanyl and illegal migrants entering the US come from Canada. He also opposed the use of tariffs to address these issues. Despite this, Trump is ready to escalate further if retaliations continue.
