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Home National & International

Canada to Impose Retaliatory Tariffs on US Amid Trade Dispute

Lagatar News by Lagatar News
March 4, 2025
in National & International
Canada to Impose Retaliatory Tariffs on US Amid Trade Dispute
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Lagatar24 Desk

Ottawa: Canadian Prime Minister Justin Trudeau has announced that Canada will impose retaliatory tariffs on US goods after President Donald Trump confirmed the enforcement of tariffs on Canadian and Mexican exports.

Trudeau, in a statement late Monday, declared that Canada would levy 25% tariffs on C$155 billion ($107 billion) worth of US goods starting Tuesday if the US follows through with its trade restrictions.

Canada’s Response to US Tariffs

The initial phase of Canada’s retaliation will involve C$30 billion worth of US goods, with the remaining C$125 billion tariffs to be imposed after 21 days.

“Let me be unequivocally clear – there is no justification for these actions,” Trudeau stated, adding that Canada will not allow this decision to go unanswered.

• The US tariffs include a 25% levy on Canadian exports and 10% on Canadian energy products.

• Canada’s retaliatory measures will remain in place until the US withdraws its trade action.

• Trudeau also hinted at additional non-tariff measures in collaboration with Canadian provinces and territories.

Canada’s Measures on Border Control and Fentanyl Crisis

Trudeau highlighted Canada’s efforts to address border security concerns, a key issue raised by Trump’s administration.

• Canada implemented a $1.3 billion border security plan, strengthening surveillance and coordination.

• The government appointed a Fentanyl Czar and listed transnational cartels as terrorist organizations.

• A Canada-US Joint Strike Force on organized crime was launched to combat illicit drug trafficking.

• As a result, fentanyl seizures from Canada dropped by 97% between December 2024 and January 2025, reaching a near-zero level of 0.03 pounds seized by US Customs and Border Protection.

Trump’s Stance on Trade Tariffs

Trump initially imposed 25% tariffs on Canadian and Mexican imports on February 1, but temporarily suspended them on February 3 after both nations pledged to address border-related concerns.

However, on Monday, Trump reaffirmed that no further exemptions would be granted, stating, “There is no room left for Mexico or Canada. The tariffs are all set and are going into effect tomorrow.”

The US administration justified the move by citing illegal migration, drug trafficking, and the flow of fentanyl from neighboring countries.

Economic Fallout and Diplomatic Strain

Trudeau warned that the US tariffs would lead to higher prices for groceries, gas, and cars, potentially resulting in job losses for American workers.

Despite Canada’s diplomatic efforts, the escalating trade war between the two nations could significantly impact bilateral trade relations and economic stability in North America.

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