Prime Minister Justin Trudeau said Canada will be imposing 25 percent tariffs on $155 billion worth of U.S. imports in response to President Donald Trump’s order to place 25 percent tariffs on Canadian goods.
“We will stand strong for Canada,” Trudeau said at a press conference on Feb. 1.
Trudeau said the 25 percent retaliatory tariffs on $30 billion worth of U.S. imports will start on Feb. 4, the same day the American tariffs are set to begin. The tariffs on the other $125 billion worth of goods will come in 21 days, to allow impacted Canadian companies to adjust their supply chains.
- Beer, wine, and bourbon
- Fruits and fruit juices including orange juice, as well as vegetables
- Perfume, clothing, and shoes
- Major consumer products such as household appliances and furniture
- Sports equipment
- And other materials such as lumber and plastics
As Trump had said on Jan. 31, the U.S. tariffs will be lower on Canada’s oil and gas exports, at 10 percent, while other goods will have a tariff of 25 percent.
Trudeau said he has also talked with Mexican President Claudia Sheinbaum, whose country is announcing its own retaliatory measures to Trump’s 25 percent tariffs.
“Today, we’re working together to face these tariffs,” Trudeau said.
Trudeau urged Canadians to buy made-in-Canada products and to take vacations inside Canada. He also asked Canadians to stay away from buying American products such as Florida orange juice.
He added that he has been working with the premiers to come up with measures to support Canadians impacted by the tariffs.
The prime minister aid he hasn’t been able to talk with Trump since his inauguration as president on Jan. 20.
Address to Americans
Trudeau opened his remarks with an address directed to Americans, stressing the close bond between the two nations.“This is a choice that, yes, will harm Canadians, but beyond that, it will have real consequences for you, the American people,” Trudeau said. He said the tariffs will increase costs for Americans.
“But it doesn’t have to be this way. As President John F. Kennedy said many years ago, ‘Geography has made us neighbors. History has made us friends. Economics has made us partners. And necessity has made us allies.’”
In announcing the tariffs, the White House reiterated Trump’s concern about drugs and illegal immigrants coming from the three countries into the United States.
“There is growing production of fentanyl in Canada, and enough fentanyl was seized at the northern border last fiscal year to kill 9.8 million Americans.”
The statement added that “illegal border crossings from Canada reached historic new highs every year for the last four fiscal years.”
Trump has also cited the trade deficit with the three countries as a reason for the need for the tariffs.
A Bank of Canada analysis says that under a mutual 25 percent tariffs scenario, Canada’s GDP would take a 2.4 percent hit.
Canada has launched a $1.3 billion plan to increase border security, which includes deploying helicopters and drones and other security measures at the border. The provinces have also announced their own measures to boost border security, including using provincial police forces to patrol the border.
Trudeau said at his Feb. 1 press conference that Canada’s border with the United States is “already safe and secure,” adding that “there’s always more work to do.” He urged Americans to work “collaboratively” with Canada to tackle the issue of drug trafficking.
“Big macro issues with tariffs are being studied. But the micro issue is Canada and Mexico and the [fentanyl] precursors from China. They need to end,” Lutnick said.
“Respect America, if we are your biggest trading partner, show us the respect.”
Canada’s Foreign Affairs Minister Mélanie Joly said on Jan. 31 that Canada’s retaliatory tariffs would be coming in rounds.
‘Extremely Disappointed’
Canada’s premiers have also called for, and in some cases taken their own actions, as a retaliatory response to the U.S. tariffs.Ontario Premier Doug Ford, who is in the middle of an election campaign, said he is “extremely disappointed” with the tariffs, and said he supports the federal government in delivering a “strong and forceful response that matches the U.S. tariffs dollar for dollar.”
“Canada has so much of what America needs: high-grade nickel and other critical minerals, energy and electricity, uranium, potash, aluminum. We need to maximize our points of leverage and use them to maximum effect,” Ford said.
Smith, who has travelled on different occasions to the United States to meet with Trump and his officials in a bid to persuade him to not go through with the tariffs, took credit for the lowered tariffs on oil and gas, and added that her government will continue to take action to convince the president to abandon the tariffs.
She added that she supports a “proportionate response” to the tariffs with the strategic use of tariffs on imports from the United States, but said she remains opposed to export tariffs.
“President Trump’s 25 percent tariffs are a complete betrayal of the historic bond between our countries and a declaration of economic war against a trusted ally,” Eby said.
Quebec Premier François Legault noted that Canada will be hitting some American imports with 25 percent tariffs, and that his government will take action to protect the impacted sectors in his province.
“I think it’s an opportunity for some of our companies to replace American products, to develop new products, and to develop new markets,” he said at a press conference.
Conservative Party Leader Pierre Poilievre said the Liberal government must “put aside their partisan interests” and recall Parliament. The Parliament was prorogued until March 24 at the request of Trudeau on Jan. 6, the same day he announced his decision to resign once his party selects a replacement.
Poilievre said Canada should retaliate with “dollar-for-dollar” tariffs that are designed to have maximum impact on the United States and minimum impact back home, and use the tariff revenues to help the impacted workers and businesses. He added that Canada should cut taxes to attract move investment, remove legislative barriers for resource development projects, remove interprovincial trade barriers, and “rebuild” the military and boost border security.
NDP Leader Jagmeet Singh, who has urged a forceful response to Trump, said now “is a time for Canadians to stand strong and stand together.”
