Canada Responds to US Trade War with $106 Billion in New Tariffs

Canadian Prime Minister Justin Trudeau has accused the United States of igniting a trade war, following Washington’s unilateral measures that threaten to disrupt economic relations between the two nations. Trudeau announced that Canada would implement countermeasures, including significant tariffs on American goods, in response to actions taken by the US.

“We cannot stand idly by while the United States enacts policies that harm our economy and jeopardize millions of jobs,” Trudeau emphasized, confirming that the new tariffs would take effect in retaliation for Washington’s recent decisions.

The trade conflict escalated after the Trump administration imposed tariffs on Canadian products, including a steep 25% duty on a broad range of items, from beer and wine to household appliances and sporting goods. The White House justified these tariffs by claiming the need to “protect the American economy from the influx of dangerous drugs and non-competitive goods.” However, Trudeau dismissed these assertions, noting that less than 1% of fentanyl entering the United States is traced back to Canada, and labeling the US measures as “unreasonable and destructive.”

In response, Canada has prepared retaliatory tariffs on approximately C$155 billion (about US$106.6 billion) worth of American goods, marking the largest package of countermeasures in the history of bilateral trade relations. According to Reuters, the first wave of tariffs, valued at $30 billion, took effect at 12:01 AM GMT on Tuesday, with an additional $125 billion set to be implemented following a 21-day consultation period. Affected goods include American beer, wine, bourbon, fruits, clothing, footwear, and furniture, which economists warn could lead to increased prices for consumers in both countries.