Canada will enforce 25% tariffs on C$155 billion ($107 billion) worth of U.S. goods starting Tuesday if the U.S. proceeds with its proposed tariffs on Canadian products, Prime Minister Justin Trudeau announced Monday.
Initially, Canada will impose 25% tariffs on C$30 billion in U.S. imports, with the remaining C$125 billion subject to tariffs in 21 days. Trudeau emphasized that the tariffs will remain until the U.S. withdraws its trade measures. He also noted that Canada is in active discussions with provinces and territories to explore additional non-tariff countermeasures should the U.S. fail to lift its restrictions.
This trade dispute escalates amid growing tensions between Canada and the U.S., potentially affecting key industries on both sides. Canadian officials argue that the U.S. tariffs unfairly target their economy, prompting swift retaliation to protect domestic businesses.
With both countries standing firm, the conflict could impact trade relations, disrupt supply chains, and increase costs for consumers and businesses. Trudeau reaffirmed Canada's commitment to defending its economic interests while urging the U.S. to reconsider its position to avoid prolonged trade disruptions.
As trade tensions rise, industry leaders and policymakers will closely monitor the situation, which could have far-reaching economic consequences for North American markets.