Canada has decided to retaliate against the new tariffs imposed by US President Donald Trump, with a 25% tariff on a range of American imported goods.
Prime Minister Justin Trudeau announced this on Saturday, warning Americans that Trump's actions will have real consequences for them, according to Reuters.
At a press conference, Trudeau stated that tariffs on American goods totaling CAD 155 billion (USD 107 billion) will be implemented.
He mentioned that tariffs on CAD 30 billion worth of American goods will take effect on Tuesday, coinciding with Trump's tariffs, while tariffs on the remaining CAD 125 billion will be enacted after 21 days.
The Prime Minister noted that the tariffs will include American beer, wine, and bourbon, as well as fruits and fruit juices, including orange juice from Trump's home state of Florida. Canada will also impose tariffs on items such as clothing, sports equipment, and home appliances.
He added that the coming weeks will be challenging for Canadians, but Americans will also suffer from Trump's actions.
"Tariffs against Canada will jeopardize your jobs, potentially leading to the closure of American auto assembly plants and other manufacturing facilities," Trudeau warned US citizens during the press conference in Ottawa.
Canada is also considering non-tariff measures that may affect critical minerals, energy procurement, and other partnerships.
According to data from the Canadian government for 2023, over USD 2.5 billion crosses the 9,000 km long Canada-US border daily, particularly in the energy and manufacturing sectors.
In 2023, Canada exported approximately CAD 550 billion worth of goods and services to the US, accounting for over three-quarters of total exports. Energy made up 30%, while industrial goods were around 15% of exports to the south of the border.
Exports to the US represent about 17.8% of Canada's GDP and support over 2.4 million jobs in Canada.
Reminder:
US President Donald Trump signed three executive orders to impose additional tariffs on goods from Canada, Mexico, and China. This marked the first official action in the trade war. Leaders from Canada and Mexico promised to respond with similar measures.
