Canada Retaliates Against US Tariffs with New Trade Restrictions

Tariffs Come into Effect to Counter 25% Tariff on Canadian Goods

Canada’s Prime Minister Justin Trudeau announced yesterday that the country will be implementing its own trade restrictions against US goods, a direct response to the 25% tariffs President Donald Trump has imposed on a wide range of Canadian imports. The move, which targets American goods worth over $155 billion, is seen as a way to mitigate the impact of Trump’s tariffs and protect Canadian interests.

A $155 Billion Retaliation Plan Unveiled

Trudeau explained that the first phase of Canada’s retaliatory measures will involve a 25% tariff on $30 billion worth of US goods, with the additional $125 billion following 21 days later. Among the affected goods are American beer, whiskey, and wine, as well as orange juice, clothing, household appliances, and lumber. Moreover, Trudeau also hinted at implementing non-tariff barriers such as reviewing procurement policies, to further address any unfair trade practices.

Avoiding Energy Export Consequences

Although the Trudeau government has a plethora of retaliatory measures in the pipeline, some actions – like limiting energy exports – have been carefully considered, with a keen eye on potential regional impacts. “We are taking care not to have anyone part of the country bear an unfair burden,” Trudeau emphasized in his statement, demonstrating Canada’s commitment to equity and regional economic stability.

New Tariffs Amid Broader US Trade Policy Shift

The Trump administration’s latest move, imposing a 25% tariff on $155 billion of Canadian goods, marks a significant shift in trade policy between the two countries. This action also affects trade ties with Mexico, with a smaller 10% tariff imposed, and a raised tariff on China. The claimed motivation behind this tariff surge lies in addressing illegal fentanyl flowing into the United States from Canada and Mexico.