The first round of U.S. tariffs and Canada’s counter-tariffs are now in effect, marking the start of a trade war between the long-time North American allies.
As of Tuesday, a sweeping 25 per cent tariff has been imposed on all goods going into the United States from both Canada and Mexico, with a 10 per cent tariff on Canada’s energy exports.
In response, Canada has hit back with an initial 25 per cent tariff on $30 billion worth of U.S. goods, with additional tariffs on another $125 billion in American goods to come three weeks later, Prime Minister Justin Trudeau said.
“Canada will not let this unjustified decision go unanswered,” Trudeau said in a statement Monday night, hours before the U.S. deadline.
“Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” he added.
“While we urge the U.S. administration to reconsider their tariffs, Canada remains firm in standing up for our economy, our jobs, our workers, and for a fair deal.”
President Donald Trump had signed an executive order on Feb. 1 to levy the duties on the U.S.’s neighbours due to the flow of illegal migrants and fentanyl.
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The broad-based tariffs were put on hold for 30 days after new border security commitments were made by Canada, but Trump pulled the trigger on Tuesday.
In response to Trump’s original vow of 25 per cent tariffs on Canadian goods, Canada released its own list of planned counter-tariffs.
Meanwhile, Canada is bracing for two more rounds of tariffs threatened by the Trump administration, including additional 25 per cent duties on all steel and aluminium imports coming to the U.S., including from Canada, set to go into effect March 12.
On April 2, Trump is also planning to impose global reciprocal tariffs on all of America’s trading partners, including Canada.
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