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Canada hits back at US tariffs with $155Bln in trade penalties

  • By Al Mayadeen English
  • Source: Agencies
  • 4 Mar 2025 19:56
3 Min Read

Economic analysts suggest that the tariffs could slow economic growth in both countries, with potential long-term consequences for cross-border trade.

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  • People work as a television displays a news conference by Canadian Prime Minister Justin Trudeau on the floor at the New York Stock Exchange in New York, Tuesday, March 4, 2025. (AP)
    People work as a television displays a news conference by Canadian Prime Minister Justin Trudeau on the floor at the New York Stock Exchange in New York, Tuesday, March 4, 2025 (AP)

Canadian Prime Minister Justin Trudeau cautioned on Tuesday that the United States' newly imposed tariffs on Canadian goods would have severe repercussions, describing the situation as a difficult challenge for the country.

"Now to my fellow Canadians. I won't sugarcoat it. This is going to be tough," Trudeau told reporters, acknowledging the economic strain the tariffs could bring.

Canada's Retaliatory Tariffs Take Effect

In direct response to Washington's decision, Canada has enacted 25% tariffs on $155 billion worth of US goods. The first wave, targeting $30 billion in American products, took effect immediately, while the remaining $125 billion will be implemented in 21 days.

"At the moment, the US tariffs came into effect in the early hours of this morning, and so did the Canadian response. Canada will be implementing 25% tariffs against $155 billion worth of American goods, starting with tariffs on $30 billion worth of goods immediately, and tariffs on the remaining $125 billion of American products in 21 days' time," Trudeau stated.

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The tariffs will remain in place until the US reverses its trade actions, and the Canadian government is considering additional non-tariff measures in coordination with provinces and territories.

Read more: Trump's tariffs mark a shift toward protectionism: WSJ

The escalating trade conflict is expected to hit multiple sectors, affecting supply chains and consumer prices in both countries. Canadian officials warn that industries such as agriculture, automotive, and retail could face disruptions, as US goods become more expensive.

Economic analysts suggest that the tariffs could slow economic growth in both countries, with potential long-term consequences for cross-border trade. In the US, businesses relying on Canadian exports may also feel the impact of Canada's retaliatory measures.

Trudeau Plans Talks With Trump

Amid rising tensions, Trudeau signaled his intent to speak directly with US President Donald Trump to discuss the ongoing trade dispute.

"I have offered to speak to Donald over the past number of days, and I expect to speak with him in the days to come," he said.

Trudeau also dismissed Trump's claim that the tariffs were specifically tied to fentanyl concerns, arguing that the US decision was a broader economic measure that Canada had no power to prevent.

  • United States
  • tariffs
  • Justin Trudeau
  • Canada
  • Donald Trump

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