Canada Retaliates with Tariffs on $155 Billion of US Goods as Trump’s Import Taxes Take Effect

In a tit-for-tat escalation of trade tensions, Canadian Prime Minister Justin Trudeau announced retaliatory tariffs on $155 billion worth of American goods, effective Tuesday at 12:01 a.m., matching the implementation of President Donald Trump’s tariffs on Canadian imports, Fox News reports.

The move comes in response to Trump’s executive order imposing an additional 25% tariff on imports from Canada and Mexico, and an additional 10% tariff on Chinese imports, including a 10% tax on energy imports from Canada such as oil, natural gas, and electricity.

The retaliatory tariffs represent a significant escalation of the trade dispute, with both countries accusing each other of unjustified actions that will harm their respective economies. China has already imposed tariffs on U.S. goods, and Mexico has vowed similar retaliatory measures.

While the Trump administration agreed to a 30-day delay in implementing the tariffs on Canadian and Mexican goods last month, recent negotiations between officials from both countries and the Trump administration failed to yield an agreement to reduce the tariffs.

Prime Minister Trudeau, addressing the nation on Monday, stated that “there is no justification for these actions,” specifically challenging the White House’s rationale that fentanyl flows into the U.S. warranted the tariffs on Canada, Mexico, and China. He emphasized that the amount of fentanyl originating from Canada is minimal.

“While less than 1% of the fentanyl intercepted at the U.S. border comes from Canada, we have worked relentlessly to address this scourge that affects Canadians and Americans alike,” Trudeau stated. He highlighted Canada’s efforts to combat fentanyl trafficking, including a $1.3 billion border plan, the appointment of a “Fentanyl Czar,” and the listing of transnational criminal cartels as terrorist organizations. Trudeau emphasized that these efforts, in partnership with the United States, have led to a 97% drop in fentanyl seizures from Canada between December 2024 and January 2025.

Undaunted, Trudeau declared that Canada “will not let this unjustified decision go unanswered,” announcing that tariffs on American goods would go into effect at 12:01 a.m. if the Trump tariffs are implemented as scheduled.

Canada plans a phased approach to its retaliatory tariffs, starting with tariffs on $30 billion worth of American goods, followed by tariffs on an additional $125 billion of American products in 21 days.

“Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” the prime minister said, signaling a long-term commitment to defending Canada’s economic interests.

Trudeau warned that Americans will face higher prices for groceries, gas, and cars, and that Trump’s tariffs could lead to thousands of job losses.

“Tariffs will disrupt an incredibly successful trading relationship,” he stated. “They will violate the very trade agreement that was negotiated by President Trump in his last term.”