Prime Minister Trudeau Slaps Tariffs on U.S. Goods After Trump’s Trade Move
Canada isn’t backing down.
After President Donald Trump imposed steep tariffs on some of the U.S.’s biggest trade partners, Prime Minister Justin Trudeau announced swift retaliation, slapping a 25% tariff on $155 billion worth of American goods.
The tariffs, which will go into effect Tuesday (Feb 4), will place a 25% tax on goods from Canada and Mexico, while Canadian energy products and imports from China face a 10% levy. Trump justified these trade measures by linking them to illegal immigration and drug trafficking—claims that the Canadian Prime Minister swiftly dismissed.
“Less than 1% of fentanyl and less than 1% of illegal crossing into the United States come from Canada,” Trudeau stated, rejecting the premise behind the tariffs.
Trudeau is also challenging the legality of Trump’s tariffs, calling them a direct violation of the North American Free Trade Agreement (NAFTA), which took effect in July 2020. In response, Canada is striking back with its own trade penalties.
"I am announcing Canada will be responding to the U.S. trade action with 25% tariffs against $155 billion worth of American goods," Trudeau declared.
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The backlash is already taking shape, with some Canadian provinces ordering government-run liquor stores to pull American-made alcohol from their shelves.
Meanwhile, the U.S. and Mexico have temporarily sidestepped a full-blown trade war. On Monday (Feb 3), both countries reached an agreement to delay a 25% tariff on Mexican imports for one month after Mexico committed to reinforcing its northern border with 10,000 National Guard members to combat drug trafficking, particularly fentanyl.
Mexican President Claudia Sheinbaum confirmed the plan on social media, while Trump announced that U.S. officials—including Secretary of State Marco Rubio—will continue negotiations.