Canada will retaliate against Trump with tariffs on US goods

Canada will set its own tariffs against US goods in retaliation to broad 25 percent tariffs President Donald Trump announced Saturday on Canadian imports. Prime Minister Justin Trudeau announced a 25 percent tariff on a total of $155 billion worth of American goods — $30 billion of that on Tuesday when Trump’s tariffs go into effect, then an additional $125 billion after 21 days. Trudeau also warned that the US tariffs will harm both countries’ economies, particularly the auto industry. “This is a choice that, yes, will harm Canadians, but beyond that, it will have real consequences for you, the American people,” he said in a press conference Saturday.

Trudeau offered a “far-reaching” list of products that would be subject to import taxes, including American alcohol, orange juice, clothing, appliances, lumber, and plastics, along with “much, much more.” Non-tariff moves like reexamining public procurement policies are also on the table. However, he said that actions like limiting energy exports would require more careful consideration because “no one part of the country should be carrying a heavier burden than any other.”

The sweeping US tariffs, which include a lower 10 percent tariff on energy products from Canada, are a major shift in trade policy between the two countries. Trump claims the tariffs — which he also imposed on Mexico, and increased on goods from China — are meant to incentivize these countries to stem the flow of illegal fentanyl into the US.

The US tariffs include a clause seeking to prevent retaliation, outlets including The Wall Street Journal report, which would increase the penalties should the countries impacted impose their own tariffs. Despite this, Trudeau says that Canada’s new tariffs “are strong but appropriate in this case, and we will continue to defend Canada, Canadians, and our future.”