Despite months of relentless efforts by Canadian officials and business leaders to demonstrate that tariffs were neither justified nor necessary, yesterday United States (US) President Donald Trump imposed a 25% tariff on all Canadian goods except specified energy and energy resources, which are subject to a 10% tariff.
These measures came into effect at 12:01 a.m. EST on March 4, 2025, and were imposed under the International Emergency Economic Powers Act based on the premise that Canada is a source for flows of fentanyl and other illicit drugs into the US.
In response, Canada has said it will apply a retaliatory 25% tariff on $155 billion of specified US goods. In a statement, Canadian Prime Minister Justin Trudeau said last night, “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 – starting with tariffs on $30 billion worth of goods immediately, and tariffs on the remaining $125 billion on American products in 21 days’ time. Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures. 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.
“Because of the tariffs imposed by the U.S., Americans will pay more for groceries, gas, and cars, and potentially lose thousands of jobs. Tariffs will disrupt an incredibly successful trading relationship. They will violate the very trade agreement that was negotiated by President Trump in his last term.”
Key resources:
- List of US goods subject to retaliatory tariffs: List of products from the United States subject to 25 per cent tariffs effective February 4, 2025 - Canada.ca
- US Federal Register Notice: 2025-03664.pdf
- White House Fact Sheet: Fact Sheet: President Donald J. Trump Proceeds with Tariffs on Imports from Canada and Mexico