Canada to impose 25% tariffs on U.S. goods in retaliation for Trump’s trade measures

Canada is set to retaliate by imposing a 25% tariff on American goods, according to Prime Minister Justin Trudeau. The decision follows U.S. President Donald Trump’s move to impose tariffs on Canada and Mexico starting Tuesday.

On Monday, Trudeau announced 25% tariffs on $155 billion worth of U.S.-made products. The retaliatory measures will begin with tariffs on $30 billion worth of goods at 12:01 a.m. Tuesday, followed by tariffs on the remaining $125 billion in 21 days.

Canadian tariffs will remain in place until the U.S. trade action is withdrawn. Trudeau warned that discussions are ongoing with provinces and territories to explore additional non-tariff measures if U.S. tariffs persist.

“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,” Trudeau said.

The prime minister’s decision follows Trump’s announcement that he will proceed with 25% tariffs on Canadian exports and a 10% tariff on Canadian energy after a one-month pause following his initial declaration.

Trudeau stated that Canada has worked to address fentanyl smuggling, noting that fentanyl seizures from Canada dropped 97% between December 2024 and January 2025, reaching a near-zero low of 0.03 pounds seized by U.S. Customs and Border Protection.

He also highlighted Canada’s implementation of a $1.3 billion border plan, which includes new resources and personnel to curb fentanyl trafficking, the appointment of a fentanyl czar, the formation of a joint U.S.-Canada strike force, and the designation of cartels as terrorist organizations.

Trump also announced that Mexico will face the same 25% tariffs and an additional 10% increase on top of the already existing 10% tariff on Chinese goods.

“Because of the tariffs imposed by the U.S., Americans will pay more for groceries, gas, and cars, and potentially lose thousands of jobs,” Trudeau said. “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.”