Prime Minister Justin Trudeau announced sweeping 25% retaliatory tariffs on $155 billion worth of American goods on the eve of the scheduled 25% levy imposed by President Donald Trump on Canada.
Despite Canada’s cooperation in addressing illicit drug trafficking, the prime minister stated that the White House “has decided to proceed with imposing 25% tariffs on Canadian exports and 10 per cent tariffs on Canadian energy,” adding, “Let me be unequivocally clear—there is no justification for these actions.”
Trudeau underscored his government’s frustration with the Trump administration’s rationale for the tariffs—specifically Washington’s claims about Canadian fentanyl and other illicit drug imports—citing data that suggests “less than 1% of the fentanyl intercepted at the US border comes from Canada.”
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“Canada will not let this unjustified decision go unanswered,” Trudeau reiterated.
According to his statement, Canada’s countermeasures kicked in at 12:01 a.m. EST with $30 billion of immediate tariffs, followed by another $125 billion in 21 days unless the US reverses course.
“Our tariffs will remain in place until the U.S. trade action is withdrawn,” he explained. “And should US tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures.”
Some American companies—among them major automakers like General Motors—are bracing for fallout that could ripple across tightly integrated supply chains.
“Because of the tariffs imposed by the US, Americans will pay more for groceries, gas, and cars, and potentially lose thousands of jobs,” Trudeau stressed.
Still, Trudeau’s statement left the door open for a resolution, urging the US administration “to reconsider their tariffs” and reach a “fair deal” that respects mutual interests. But for now, it seems his message remains uncompromising.
“Tariffs will disrupt an incredibly successful trading relationship. They will violate the very trade agreement that was negotiated by President Trump in his last term,” the prime minister ended.
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