Prime Minister Justin Trudeau announced Saturday night that Canada will impose retaliatory tariffs against the United States.
That’s after U.S. President Donald Trump signed an executive order to impose a 25 per cent tariff on Canadian goods starting Tuesday, with a lower 10 per cent tariff on energy.
In response, Trudeau says Canada will place a 25 per cent tariff on $155 billion in American goods. The first $30 billion will come into effect Tuesday. The remainder will come into effect in 21 days to give businesses and supply chains time to adjust. Trudeau says the tariffs will affect everyday items like American alcohol, fruit and fruit juices, including orange juice, vegetables, perfume, clothing and shoes, household appliances, furniture, sports equipment, and materials like lumber and plastics.
He is also consulting the premiers about non-tariff responses related to energy, procurement and critical minerals.
The U.S. has warned it will escalate its tariffs if Canada retaliates. Trump’s stated justification for the tariffs is securing the border and solving the fentanyl crisis. Trudeau countered that only 1 per cent of the fentanyl going into the U.S. is coming from Canada.
Some other provinces have announced their own, separate measures. B.C. and Nova Scotia will exclude or limit American companies in bidding on procurement contracts. Nova Scotia is pulling American alcohol off its liquor store shelves, while B.C. will stop buying alcohol from “Red States” which voted Republican in the last U.S. election.