Canada to impose 25% tariffs on $155B of U.S. goods if Trump moves forward with plans

Prime Minister Justin Trudeau has issued a defiant statement, asserting that Canada is fully prepared to engage in a trade war with the United States if President Donald Trump proceeds with the sweeping tariffs he’s threatening to implement. In a bold declaration late Monday, Trudeau emphasized that Canada would not tolerate what he described as an unjustified decision by the U.S. administration.

“If American tariffs take effect tonight, Canada will, effective 12:01 a.m. EST tomorrow, respond with 25% tariffs against $155 billion worth of American goods,” Trudeau said. He further indicated that the retaliatory tariffs would remain in place until the U.S. withdraws its trade actions. Additionally, he mentioned that Canada was considering non-tariff measures in collaboration with provinces and territories to further address the situation.

Canada’s retaliation strategy has been divided into two phases, with the first set of tariffs, totaling $30 billion in U.S. goods, expected to come into force immediately. A second, larger wave of tariffs on a broader range of American products, worth $125 billion, will follow after a 21-day public comment period.

Foreign Affairs Minister Melanie Joly reinforced the government’s resolve, stating that Trump’s tariffs posed an “existential threat” to Canada. She emphasized that Canada was more than ready to counter any aggressive trade moves by the U.S. “We will be ready,” Joly declared to reporters on Monday before Trudeau’s announcement.

Trump initially threatened a 25% tariff on Canadian goods in late November 2024, justifying the decision with claims that illegal migration and drugs were flowing into the U.S. from Canada. Despite these threats, Canada worked diplomatically to delay the tariffs through a deal signed on February 1. The agreement saw Canada recommitting to its $1.3-billion border plan, which includes deploying extra personnel, drones, and surveillance equipment to combat illegal activities. This deal provided a temporary 30-day reprieve for Canada, but with Trump’s confirmation on Monday, that grace period has now ended.

Trump made it clear that the tariffs are set to go into effect, stating that there is “no room left” for negotiation, adding that “they’re all set” and “they go into effect tomorrow.”

Canada, however, remains firm in its position. Trudeau pointed out in his statement that less than 1% of fentanyl intercepted at the U.S. border originates from Canada. He reiterated that the Canadian government has worked tirelessly to combat the drug crisis that affects both Canadians and Americans, undermining Trump’s justification for the tariffs.

In addition to the tariffs already planned for Canadian goods, Trump has promised further levies, including 25% tariffs on steel and aluminum beginning March 12. National Defence Minister Bill Blair reiterated that Canada is prepared to respond to any of these additional measures, stressing that discussions between the Canadian and U.S. governments are still ongoing.

Ford Threatens Strong Retaliation

Ontario Premier Doug Ford, who also chairs the Council of the Federation of Canada’s premiers, expressed his own readiness to retaliate against Trump’s tariffs. Ford declared that Ontario would respond strongly to the U.S. tariffs, with potential measures ranging from cutting off exports of nickel to removing American alcohol from provincial liquor stores and terminating government contracts with U.S. companies.

Ford has warned that he is prepared to take the drastic step of shutting off electricity exports to the U.S. from Ontario, which supplies power to states like New York, Michigan, and Minnesota. “If he wants to destroy our economy and our families, I will shut down the electricity going down to the U.S.,” Ford told NBC’s Meet the Press. “And I’m telling you, we will do it. It’s unfortunate.”

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Ford emphasized that the tariffs would hurt both Canadian and American markets, predicting a sharp economic downturn on both sides of the border. “It’s going to be an absolute disaster,” he warned, adding that he had received strong support from several U.S. governors, senators, and congresspeople, all of whom described the tariffs as a reckless move that could wreak havoc on both countries.

As tensions between the two nations escalate, both the Canadian federal and provincial governments are making it clear that they are fully prepared to stand their ground in the face of U.S. tariffs, signaling the potential for a protracted trade war with significant economic consequences on both sides of the border.