In a significant escalation of trade tensions, Prime Minister Justin Trudeau announced on Saturday that Canada will impose 25% tariffs on $106 billion (Can$155 billion) worth of American goods in response to new US trade restrictions.
Trudeau, speaking in an assertive tone, warned of a growing rift between the two longtime allies and said Canada had no choice but to act.
“We’re certainly not looking to escalate. But we will stand up for Canada, for Canadians, for Canadian jobs,” he declared.
The first round of Canadian tariffs, covering Can$30 billion ($21 billion) worth of US imports, will take effect on Tuesday, with an additional Can$125 billion ($85 billion) worth of tariffs rolling out in three weeks.
The tariffs will hit a wide range of American goods, including beer, wine, bourbon, fruits, vegetables, consumer appliances, lumber, and plastics. Meanwhile, Canadian exports to the US will also be impacted, as Washington has announced a 25% tariff on most goods, with a lower 10% levy on energy resources like oil and natural gas.
The trade dispute was triggered by President Donald Trump’s sweeping tariffs on Canada, Mexico, and China, which he justified by citing concerns over illegal immigration and drug trafficking.
Trudeau fired back, emphasizing the economic fallout the US could face, including job losses, rising prices for American consumers, potential shutdowns of US auto plants, and reduced access to Canadian steel, aluminum, and key minerals like nickel, uranium, and potash.
Trudeau also reminded Americans of Canada’s historic support for the US, referencing past military alliances and disaster relief efforts, including the Iran hostage crisis, the war in Afghanistan, Hurricane Katrina relief efforts, and aid during the California wildfires.
“We’re always there, standing with you. If President Trump wants to usher in a new golden age for the United States, the better path is to partner with Canada, not to punish us,” Trudeau stated.
In a sign of mounting frustration, provincial leaders have vowed to take additional measures to counter US tariffs. Alberta Premier Danielle Smith called Trump’s policy “mutually destructive” and warned of its impact on US-Canada relations. British Columbia Premier David Eby labeled the tariffs “a complete betrayal”, describing them as “a declaration of economic war against a trusted ally.” Some provinces are considering bans on US alcohol imports, removing American wines and spirits from store shelves.
The trade dispute also sparked public backlash, with a sold-out crowd at an NHL game in Ottawa booing the US national anthem before a match between the Ottawa Senators and Minnesota Wild.
The US-Canada trade dispute marks a sharp downturn in relations between the two North American neighbors. While both sides have indicated they are not looking to escalate further, the coming weeks will test whether diplomatic efforts can prevent a full-blown trade war.
