In retaliation for the decision by President Donald Trump of the United States to impose their own harsh duties on Canada, Canada will start imposing on Tuesday 25 percent retaliatory tariffs on $30 billion worth of goods from the United States.
Prime Minister Justin Trudeau said that $125 billion more in tariffs on American imports would be imposed within 21 days, giving Canadian consumers and businesses time to adjust and look for alternative suppliers.
Trudeau’s response came less than an hour after Trump announced 25 percent tariffs on all goods from Canada, and 10 percent duties on oil, natural gas and electricity, also to take effect Tuesday.
Even though Trump’s order contained provisions allowing tariffs to be raised if Canada retaliated with countermeasures, Trudeau on Wednesday chose to avoid retaliation.
“We have disagreements from time to time, but always have found a way through,” Trudeau said.
“If President Trump wants to guide the U.S. toward a new era of economic prosperity, the best way to do so is to partner with Canada, not punish us. Canada has the tools and people to bolster North America’s economy, and we are ready to partner.”
Trudeau did not directly answer when asked if Canada was willing to reduce energy exports to the U.S. in response to the tariffs. Rather, he called any action with an impact on specific areas of the country “cautious” and said it would be taken in collaboration with regional leaders.
Speaking directly to the American public, whom he called “our closest allies and neighbors,” Trudeau emphasized the wider economic costs of the tariffs.
“This decision harms Canadians and has serious consequences for American workers on top of that. These tariffs will endanger American jobs, possibly causing the closure of auto assembly plants and other manufacturing sectors. They will also increase prices on the basic necessities of life, including grocery and gas.”
The tariffs, according to Trudeau, would cover a variety of American products, from beer and wine to bourbon, orange juice, vegetables, perfumes, clothing and footwear. And now things like home appliances, furniture and sports equipment as well as raw materials like lumber and plastics will also take an impact as imports slow down.
He said Canada is also looking at introducing additional non-tariff measures, which could include restrictions on critical minerals, energy exports, government procurement and other trade ties. Steel and ceramics had already been flagged as potential targets for taxation, and Ottawa is expected to release a more detailed list by Sunday.
Admitting that many Canadians are “uneasy” about the situation, Trudeau tried to reassure the country: “We are in this together. We will not shy away from standing up for Canada’s interests and making sure that our two countries keep the closest partnership of any two nations in the world.”
The tariffs threatened to ratchet up trade tensions between the United States and its two largest partners, Canada and Mexico, and risked upending North America’s economic equilibrium.
The Trump administration defended the tariff imposition as a strategy employed to encourage China, Mexico and Canada to stop producing and distributing fentanyl, and to urge Canada and Mexico to strengthen border controls to deter illegal immigration.
A senior U.S. official who declined to detail what would have to happen for the tariffs to come off said the ultimate objective is to drive down the number of Americans killed by fentanyl overdoses.
Previously, Trudeau had responded to Trump’s border security demands by announcing a $1.3 billion investment in helicopters, canine units and advanced imaging technology.
Trudeau said he has not spoken directly with Trump since Trump took office last week but added that his government has held “highly productive” talks with U.S. officials. He said that he planned to talk to the American president soon.
NDP Leader Jagmeet Singh called on Canadians to “stay united and resolute,” while Conservative Leader Pierre Poilievre wrote on social media that “CANADA MUST COME FIRST,” demanding the immediate return of Parliament to discuss the issue.
But Trudeau said there is no need to recall Parliament because his government has the powers it needs to protect Canadians that do not require legislative action.
