Canada hits back with 25% tariffs on $155 billion of US goods

The moment US tariffs came into effect this morning, so did Canada’s response. Prime Minister Justin Trudeau announced that Canada is imposing 25% tariffs on $155 billion worth of US imports in retaliation against Washington’s latest trade measures.The tariffs will be rolled out in two phases—starting with $30 billion worth of goods immediately, followed by an additional $125 billion in 21 days’ time. The move follows US President Donald Trump’s decision to slap 25% tariffs on imports from Canada and Mexico, triggering fresh tensions between the longtime allies.

The moment U.S. tariffs came into effect this morning, so did the Canadian response.

Canada will be implementing 25% tariffs against $155 billion of American products.

Starting with $30 billion worth of goods immediately, and the remaining $125 billion in 21 days’ time.

— Justin Trudeau (@JustinTrudeau) March 4, 2025

Trudeau condemned the US decision, calling it unjustified and vowing that Canada would not back down.

“Today, the United States launched a trade war against Canada: their closest partner and ally — their closest friend,” Trudeau posted on X. “Canadians are reasonable, but we will not back down from a fight. Not when our country is at stake.”

Today, the United States launched a trade war against Canada: their closest partner and ally — their closest friend.

Canadians are reasonable, but we will not back down from a fight.Not when our country is at stake.

— Justin Trudeau (@JustinTrudeau) March 4, 2025

Speaking to reporters, Trudeau said Canada would challenge the U.S. tariffs through the World Trade Organization and under the U.S.-Mexico-Canada trade agreement (USMCA).

He also warned of further action if the tariffs remained in place. “If the U.S. tariffs persist, Canada will impose a 25% tariff on a further $125 billion of U.S. imports in 21 days’ time,” he said.

The dispute marks a sharp escalation in trade relations between the two nations, raising concerns over economic fallout for key industries on both sides of the border.