Canada to impose 25% retaliatory tariff on US goods; says ‘won’t let unjustified decision go unanswered’

Canada's Prime Minister Justin Trudeau announced the implementation of retaliatory tariffs on the United States, effective at 12:01 a.m. EST. This move follows the US administration's decision to impose 25 per cent tariffs on Canadian and Mexican goods and 10 per cent duties on Canadian energy products, ending a one-month reprieve.

In response, Canada will immediately enact 25 per cent tariffs on C$30 billion worth of US imports. This is part of a broader strategy targeting C$155 billion in American goods, with further tariffs to be introduced after a 21-day consultation period.

"Canada will not let this unjustified decision go unanswered. Should American tariffs come into effect tonight, Canada will, effective 12:01 a.m. EST tomorrow, respond with 25 per cent tariffs against $155 billion of American goods," stated Prime Minister Trudeau.

“Our tariffs will remain in place until the US trade action is withdrawn, and should US tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures. While we urge the US administration to reconsider their tariffs, Canada remains firm in standing up for our economy, our jobs, our workers, and for a fair deal,” the Canadian PM said.

The initial phase of Canada's retaliatory action will affect 1,256 US products, including goods such as orange juice, peanut butter, wine, spirits, beer, coffee, appliances, and apparel.

The Canadian government is also exploring non-tariff retaliatory measures, focusing on critical minerals and energy procurement. These actions are part of Canada’s efforts to mitigate the impact on its economy, workers, and businesses.

"Today, after a 30-day pause, the United States administration has decided to proceed with imposing 25 per cent tariffs on Canadian exports and 10 per cent tariffs on Canadian energy. Let me be unequivocally clear – there is no justification for these actions," Trudeau remarked.

The Canadian government has initiated a remission process to address any adverse effects on domestic industries and to consider relief requests from affected businesses. Additionally, the government is holding consultations to potentially expand the list of targeted US goods, which may include passenger vehicles, steel, and aerospace products.