On Saturday (February 1), Prime Minister Justin Trudeau announced in a press conference that he would impose tariffs on CAD 155 billion (USD 107 billion) worth of U.S. goods. The new tariffs on CAD 30 billion will take effect on Tuesday (February 4), the same day as President Trump’s tariffs, while tariffs on the remaining CAD 125 billion will be implemented within 21 days, according to Trudeau.
Trudeau’s announcement came just hours after President Trump ordered a 25% tariff on imports from Canada and Mexico and a 10% tariff on goods from China.
Trump also stated that he would impose a 10% tariff on all energy imports from Canada.
The Canadian Prime Minister specified that the tariffs would target American beer, wine, and bourbon, as well as fruits and fruit juices, including orange juice from Florida. Canada will also impose tariffs on clothing, sports equipment, and household goods.
Trudeau acknowledged that the coming weeks would be difficult for Canadians but emphasized that Americans would also suffer from Trump’s actions.
“Tariffs on Canada will put your jobs at risk, potentially shutting down U.S. auto assembly plants and other manufacturing facilities,” Trudeau said, addressing American citizens in a press conference in Ottawa.
“They will raise costs for you, including food at grocery stores and gas at fuel stations,” he added.
Trudeau also mentioned that Canada was considering non-tariff measures, potentially involving critical minerals, energy procurement, and other partnerships.
According to 2023 data from the Canadian government, the 9,000 km (5,600 mile) U.S.-Canada border facilitates over USD 2.5 billion in daily trade, particularly in the energy and manufacturing sectors.
In 2023, Canada exported nearly CAD 550 billion worth of goods and services to the United States, accounting for more than three-quarters of the country’s total exports. Energy made up 30%, while manufacturing contributed approximately 15% of the exports to its southern neighbor.
Exports to the U.S. represent about 17.8% of Canada’s total GDP and support more than 2.4 million jobs in Canada.
Trudeau encouraged Canadians to buy Canadian products and vacation domestically rather than traveling to the United States.
