Canadian Prime Minister Justin Trudeau announced that Canada would implement a 25% tariff on $155 billion worth of U.S. goods in retaliation to new tariffs introduced by the Donald Trump administration.
The measures are set to take effect at 12:01 a.m. on Tuesday, mirroring Trump’s previous decision to impose a 25% tariff on imports from Canada and Mexico, and a 10% tariff on goods from China.
Trudeau condemned the U.S. tariffs, stating, “There is no justification for these actions,” and highlighted the U.S. argument that the flow of drugs, including fentanyl, into the U.S. justified these tariffs. However, the amount of fentanyl crossing from Canada is minimal.
“While less than 1% of fentanyl intercepted at the U.S. border originates in Canada, we have worked tirelessly to address this issue,” Trudeau stated. He noted the implementation of a $1.3 billion border plan, increased resources, and new measures aimed at halting the flow of fentanyl.
Additionally, Trudeau revealed that fentanyl seizures from Canada have dropped by 97% from December 2024 to January 2025, with only 0.03 pounds seized by U.S. Customs and Border Protection.
In response to the U.S. tariffs, Trudeau outlined a two-phase plan: the first phase involves $30 billion worth of tariffs, and the second phase, to follow 21 days later, will target an additional $125 billion in U.S. goods.
Trudeau warned that the tariffs could increase prices for U.S. consumers, impacting products like groceries, gasoline, and automobiles. He also cautioned that they might lead to job losses in the U.S. and damage the long-standing trade relationship between the two nations.
The Prime Minister made it clear that Canada would stand firm in defending its economy and workers, insisting that the tariffs would remain in place until the U.S. retracts its trade actions. Should these tariffs persist, Trudeau mentioned that Canada is exploring other non-tariff measures with provinces and territories.
“We urge the U.S. administration to reconsider their tariffs, but Canada will continue to defend our economy, our workers, and seek a fair deal,” Trudeau emphasized. He added, “These tariffs disrupt a highly successful trading relationship and violate the trade agreement negotiated by President Trump.”
