Trudeau announces 25 per cent retaliatory tariffs on U.S. goods starting Tuesday

Canada will impose 25 per cent immediate retaliatory tariffs on American goods worth $30 billion starting Tuesday in the wake of U.S. President Donald Trump’s move to slap Canada with similar devastating duties.

Prime Minister Justin Trudeau said an additional $125 billion in duties on American products will follow in 21 days, allowing Canadian consumers and supply chains to find alternatives.

Trudeau’s announcement comes just hours after Trump slapped Canada with 25 per cent tariffs on all goods and 10 per cent tariffs on oil, natural gas and electricity, also scheduled to take effect on Tuesday.

Trudeau elected to go ahead with retaliatory tariffs even though Trump’s order includes a mechanism to escalate the rates if Canada retaliates against the U.S.

“Yes, we’ve had our differences in the past but we’ve always found a way to get past them,” said Trudeau.

“If President Trump wants to usher in a new ‘golden age’ for the United States, the better path is to partner with Canada not to punish us. Canada has the ingredients necessary to build a booming and secure partnership for the North American economy and we stand at the ready to work together.”

Trudeau did not answer whether Canada would consider cutting energy supplies to the United States in the face of 25 per cent tariffs.

He instead said any measures that involve one region of the country more than others will be done “carefully” and with the full partnership of regional leaders.

The prime minister used the announcement to speak directly to Americans, whom he called “our closest friends and neighbours,” pointing out the consequences for both countries.

“This is a choice that will harm Canadians, but beyond that, it will have real consequences for you, the American people. Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing plants. They will raise costs for you, including food at the grocery stores and gas at the pump.”

Trudeau says the tariffs will cover everything from American beer, wine and bourbon, orange juice and vegetables, perfumes, clothing and shoes. It will also include major consumer products such as household appliances, furniture and sports equipment and materials such as lumber and plastics.

Trudeau says they are also considering several non-tariff measures that could include critical minerals, energy, procurement and other partnerships. They previously floated steel and ceramics on the shortlist of items that could be taxed. Ottawa is expected to release a more detailed list as early as Sunday.

Trudeau said he understands many Canadians are feeling “anxious” at this time but wanted to reassure them that “we are all in this together.”

“We will stand strong for Canada. We will stand strong to ensure our countries continue to be the best neighbours in the world.”

The tariffs risk an economic standoff with America’s two largest trading partners in Mexico and Canada, setting up a showdown in North America that could potentially sabotage economic growth.

The Trump administration says it put the tariffs in place to force China, Mexico and Canada to stop the spread and manufacturing of fentanyl, in addition to pressuring Canada and Mexico to limit any illegal immigration into the United States.

A senior U.S. government official did not provide specific benchmarks that could be met to lift the new tariffs, saying only that the best measure would be fewer Americans dying from fentanyl addiction.

Trudeau previously announced Canada would spend $1.3 billion on a border plan that includes helicopters, new canine teams and imaging tools to address Trump’s calls on border security.

Trudeau said he has not spoken with Trump since he was sworn in last week. He says his government has instead had “very effective” conversations with Trump’s administration and that he looks forward to speaking with the U.S. President in the coming days and weeks.

NDP Leader Jagmeet Singh said Canadians must “stand strong and stand together,” while Conservative Leader Pierre Poilievre said “we must put CANADA FIRST” in a statement on social media in which he called for Parliament to return to deal with the crisis.

Trudeau said Parliament does not need to be recalled because his government has the tools to support Canadians without doing so.

Files from The Canadian Press and Associated Press were used in this report