Canada has retaliated against the United States’ recent trade measures by imposing 25% tariffs on $155 billion worth of US imports, Prime Minister Justin Trudeau announced on Tuesday. The move marks a significant escalation in the ongoing trade dispute between the two nations, raising concerns about a potential wider trade war.
“The moment U.S. tariffs came into effect this morning, so did the Canadian response. Canada will be implementing 25% tariffs against $155 billion of American products,” Trudeau stated on X (formerly Twitter).
He added that $30 billion worth of goods would be targeted immediately, with the remaining $125 billion to follow in 21 days.
US Justifies Tariffs, Cites Security Concerns
The US administration, led by President Donald Trump, justified the tariffs as a measure to protect American jobs and manufacturing while addressing illegal migration and drug trafficking. In addition to the tariffs on Canadian and Mexican imports, the US has imposed a 10% tariff on Canadian energy. Trump’s team has characterized these tariffs as a key negotiating tool, citing the need to combat the opioid crisis, particularly the influx of fentanyl.
Canada and Mexico Denounce US Actions
However, Trudeau countered that less than 1% of fentanyl intercepted at the US border originates from Canada, calling the tariffs unjustified.
Mexican President Claudia Sheinbaum echoed Trudeau’s sentiments, describing the US tariffs as lacking “motive, reason, or justification.” She announced plans to introduce her own “tariff and non-tariff measures,” with further details to be disclosed on Sunday.
Read Also: Markets Tumble as Trump’s Tariff Offensive Against Mexico, Canada, and China Takes Hold
“Existential Threat” to Canadian Jobs
Canadian Foreign Minister Mélanie Joly described the US tariffs as an “existential threat,” warning of significant job losses. Immigration Minister Marc Miller estimated that up to one million Canadian jobs could be at risk due to the deeply interconnected trade relationship between the two nations.
Impact on Workers and Consumers
The escalating trade war between the US and its closest allies has far-reaching implications for workers and consumers on both sides of the border. Higher tariffs could lead to increased prices for goods and services, potentially impacting household budgets and economic growth. The uncertainty surrounding trade policy also makes it difficult for businesses to plan and invest, potentially leading to job losses and reduced economic activity.
China Vows to Fight “to the Bitter End”
Meanwhile, China – which now faces tariffs of 20% after Trump doubled an earlier levy – has vowed to fight any trade war to the “bitter end.” It has announced its own counter-measures – including tariffs on a range of US agricultural and food products.
Looking Ahead
The coming days and weeks will be crucial in determining whether a full-blown trade war can be averted. The US faces mounting pressure from its closest allies to reconsider its trade policies and seek a diplomatic resolution to the ongoing disputes. The stakes are high, with the potential for significant economic disruption and strained international relations.
