- Canada imposes 25% tariffs on $155 billion of U.S. goods.
- U.S. tariffs take effect at midnight, targeting Canadian, Mexican, and Chinese imports.
- Trudeau calls the move unjustified, rejecting claims linking it to drug trafficking.
- Canada’s countermeasures start at $30 billion, rising to $125 billion in three weeks.
- Tariffs may raise U.S. prices on groceries, fuel, and cars, causing job losses.
Canadian Prime Minister Justin Trudeau has announced a 25% tariff on American goods in retaliation for new tariffs imposed by U.S. President Donald Trump. Canada’s tariffs will be implemented at 12:01 a.m. on Tuesday, matching the U.S. tariffs set to take effect at midnight. According to Fox Business, the retaliatory measures will initially apply to $30 billion in American imports, with an additional $125 billion following in 21 days.
Trump’s Tariff Decision and Its Implications
President Trump has signed an executive order imposing a 25% tariff on Canadian and Mexican imports, along with a 10% tariff on Chinese goods. Additionally, energy imports from Canada—including oil, natural gas, and electricity—will be taxed at an extra 10%. While Canada and Mexico have engaged in negotiations with U.S. officials in recent weeks, no agreement has been reached to prevent the tariffs from moving forward.
Trudeau’s Response and Justification
Trudeau has criticized the tariffs as unjustified, pointing out that the White House’s rationale—linking them to drug trafficking, particularly fentanyl—is flawed. He highlighted that less than 1% of fentanyl intercepted at the U.S. border originates from Canada. He also underscored Canada’s commitment to addressing the issue, citing a $1.3 billion border security initiative that has significantly reduced fentanyl smuggling.
Canada’s Countermeasures to U.S. Tariffs
In response, Canada has implemented its own trade measures aimed at defending its economy. Trudeau stated that these tariffs will remain in effect until the U.S. trade actions are withdrawn. He also indicated that Canada is actively exploring additional non-tariff measures in collaboration with provincial and territorial governments.
Economic Consequences and Trade Disruptions
Trudeau has warned that the tariffs will have significant economic repercussions, increasing the cost of essential goods such as groceries, fuel, and automobiles for American consumers. He also pointed out that the tariffs could lead to substantial job losses in the U.S. and disrupt the well-established trade relationship between the two countries. Labeling the move as a violation of the trade agreement negotiated during Trump’s previous term, Trudeau has urged the U.S. administration to reconsider its stance to prevent further economic harm.
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Source: Fox Business
