Canada will impose 25% retaliatory tariffs on $107 billion worth of U.S. goods in response to President Donald Trump’s latest trade measures, Prime Minister Justin Trudeau announced Saturday, Feb. 1. The move comes as relations between the two long-time allies reach a new low, with Trudeau warning that Trump’s actions will have economic consequences for Americans.
Tariffs target key U.S. products
Trudeau said Canada’s counter-tariffs will apply to CA$30 billion ($20.39 billion) worth of U.S. imports starting Tuesday, Feb. 4, the same day as Trump’s 10% tariffs on all Canadian energy imports. Duties on the remaining CA$125 billion ($84.98 billion) will take effect within 21 days.
The tariffs will target a wide range of U.S. goods, including:
- Alcoholic beverages such as beer, wine and bourbon
- Fruits and juices, including orange juice from Florida, Trump’s home state
- Consumer goods like clothing, sports equipment and household appliances
Trudeau warns Americans of higher costs
During a press conference in Ottawa, Trudeau directly addressed U.S. citizens, warning them about the rising costs they will face as a result of Trump’s tariffs.
“Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities,” he said. “They will raise costs for you, including food at the grocery store and gas at the pump.”
He also urged Canadians to support domestic businesses, calling on them to buy Canadian products and vacation at home instead of traveling to the U.S.
U.S.-Canada trade at risk
The tariff dispute threatens one of the world’s largest trading partnerships. Canada and the U.S. share a 9,000-kilometer (5,600-mile) border, with $2.5 billion in trade crossing daily.
In 2023, Canada exported CA$550 billion ($374.09 billion) worth of goods and services to the U.S., making up over three-fourths of its total exports. Key sectors include:
- Energy (30%)
- Manufacturing (15%)
Trade with the U.S. accounts for 17.8% of Canada’s GDP and supports 2.4 million Canadian jobs.
Trudeau highlights Canada’s historic ties with U.S.
Flanked by his foreign affairs and finance ministers, a somber Trudeau reflected on decades of U.S.-Canada cooperation, citing military alliances and economic partnerships.
“From the beaches of Normandy to the streets of Kandahar, we have fought and died alongside you during your darkest hours,” he said. “We didn’t ask for this, but we will not back down.”
Trudeau’s announcement comes as he faces political challenges at home. Amid low approval ratings, he has announced plans to resign after nine years in office once his Liberal Party selects a new leader.
Meanwhile, Canada’s Conservative opposition is leading in polls and could win the next election by a significant margin.
