Canada Retaliates Against Trump's Tariffs With Countermeasures: 25% Tariffs On $107 Billion of US-Made Goods

In an act of retaliation, Canada has announced plans to impose tariffs on American goods. This move comes in response to President Donald Trump‘s executive order that imposes a 25% tariff on most U.S. imports from Canada.

What Happened: President Trump’s Saturday executive order levies a 25% tariff on nearly all U.S. imports from Canada, along with a 10% tariff on energy.

Following this, Canadian Prime Minister Justin Trudeau has announced that Canada will impose 25% counter-tariffs on C$155 billion ($107 billion) worth of American-made products.

According to a report by Bloomberg, the counter-tariffs will be effective from Tuesday, targeting C$30 billion worth of goods initially, with the remaining tariffs to be imposed later in February.

"From the beaches of Normandy to the mountains of the Korean Peninsula, from the fields of Flanders to the streets of Kandahar, we have fought and died alongside you during your darkest hours," the outlet quoted Trudeau telling Americans on Saturday night.

Also Read: Trump Threatens BRICS Nations With 100% Tariffs

"Yes, we've had our differences in the past, but we've always found a way to get past them. As I've said before, 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," he added.

The Canadian tariffs will apply to a variety of American goods including beer, wine, food, and appliances. Trudeau also hinted at possible measures related to critical minerals and urged Canadians to support local businesses and avoid U.S. vacations.

The executive order by Trump, which accuses Canada and Mexico of not taking sufficient action against fentanyl production and trafficking, invoked emergency powers to justify the tariffs, bypassing formal procedures outlined in the US-Mexico-Canada Agreement signed in 2020.

Several Canadian officials, including Ontario leader Doug Ford and British Columbia premier David Eby, have expressed their outrage at Trump’s tariffs and announced their own retaliatory measures. Eby characterized Trump’s tariffs as a “complete betrayal” of the historic bond between the two nations.

Why It Matters: The imposition of these tariffs has sparked concerns among business groups and the Canadian Chamber of Commerce.

They predict a drastic increase in costs and a potential market collapse due to the escalating trade tensions between the two countries.

This trade dispute could have far-reaching implications for the economies of both nations and their bilateral trade relations.

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