US-Canada Tariff Row: Trudeau Announces Retaliatory Tariffs on the US.

OTTAWA, Canada – February 2, 2025

US-Canada Tariff Row: Canadian Prime Minister Justin Trudeau today announced retaliatory tariffs on US goods, a move that comes in direct response to new trade barriers imposed by the US. It marks a significant escalation in the economic standoff between the two neighbouring countries.

The decision comes after US President Donald Trump signed an executive order imposing a 25% tariff on all Canadian and Mexican imports starting Tuesday. In response, Trudeau announced that Canada would impose 25% tariffs on a wide range of US products, affecting an estimated C$155 billion ($107 billion) worth of goods. The first phase, involving C$30 billion, will take effect on Tuesday, while the remaining C$125 billion will follow within three weeks.

The tariff war marked a new low in relations between the two old allies who share the world’s longest land border. Speaking to reporters, Trudeau acknowledged the challenge ahead, but stressed that Canada would not stand idly by in the face of US trade actions.

“We didn’t ask for this, but we won’t back down,” Trudeau said firmly. “These tariffs will hurt Americans as much as they will Canadians — raising the cost of everyday items, from food and gasoline to family appliances.”

Canada will impose retaliatory tariffs on a wide range of US exports, from beer and wine to bourbon and fresh fruit and fruit juices—including Florida’s iconic orange juice—and clothing, sports equipment and household appliances.

The Canadian government is also exploring other non-tariff measures, such as restrictions on critical minerals, energy purchases and other bilateral partnerships. This would have a long-term impact on industries that depend on smooth trade between the two countries.

Trudeau urged Canadians to spend their holidays in Canada and shop at home rather than traveling to the US. He added, “Now more than ever, we must stand together and prioritize Canadian-made products.”

This will further fuel fears of a global trade slowdown and rising inflation, as the executive order imposes a 10% tariff on Chinese goods. Economists say such measures could disrupt supply chains, reduce economic growth and raise consumer prices worldwide.

Although the two countries still represent important markets for each other, this dispute represents the second wave of discord that has plagued North American trade dynamics over the past few years. The coming weeks can be expected to be closely watched as the U.S. and Canadian business, commerce and consumer communities feel the impact of these policy amendments.

As the economic impasse continues to grow, it remains to be seen whether diplomatic talks will ease tensions or the trade war will escalate. For now, Canada is firm on its stance and reinforcing its commitment to protecting national interests while preparing for potential economic challenges that may lie ahead.