Will Not Let This Unjustified Decision Go Unanswered: Canada to Impose Retaliatory Tariffs on US Worth Starting Tomorrow- wna24

Toronto: Canadian Prime Minister Justin Trudeau announced on Monday that Canada would impose retaliatory tariffs on US goods valued at $107 billion (155 billion Canadian dollars), effective starting Tuesday. This comes after the US President Donald Trump declined to back down from imposing high tariffs (25 per cent) on its neighbouring nations.

Trudeau’s move is aimed at responding to Trump’s “America First” trade policy, which has raised concerns about the future of North American trade.

Also read | Trump Reiterates 25% Duties on Mexico and Canada, Markets Tumble

In an official statement, Trudeau made it clear that Canada would not back down in the face of these tariffs, calling the move “unjustified.” “Let me be unequivocally clear – there is no justification for these actions,” he stated.

Trudeau’s comments followed a 30-day pause in which the US had hinted at imposing tariffs on Canadian exports and energy products. With Trump’s decision to proceed, Canada’s retaliation is now set in motion.

Trudeau outlined the details of Canada’s response, confirming that starting at 12:01 a.m. EST on Tuesday, Canada will impose 25% tariffs on US goods worth 30 billion Canadian dollars. Within 21 days, the remaining $125 billion worth of American goods will face similar tariffs, totaling $155 billion in retaliatory duties. He emphasised that these tariffs would remain in place until the US withdraws its tariffs. Trudeau also mentioned that Canada is prepared to explore additional non-tariff measures if the US decision is not reversed.

“Canada will not let this unjustified decision go unanswered. Should American tariffs come into effect tonight, Canada will, effective 12:01 a.m. EST tomorrow, respond with 25 per cent tariffs against $155 billion of American goods – starting with tariffs on $30 billion worth of goods immediately, and tariffs on the remaining $125 billion on American products in 21 days’ time. Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures. 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,” the statement read.

Also read | ‘Will Have an Immediate, Very Strong Response’: Canada PM Trudeau’s Warning to US Amid Tariff War with Trump

Alongside Canada, Mexico is also bracing for the possibility of US tariffs. Mexican President Claudia Sheinbaum confirmed on Monday that her country is prepared with backup plans in case Trump goes ahead with his tariff imposition. Sheinbaum stated that Mexico has “a plan B, C, D” to respond, although she did not provide further details on the specific measures being considered. Like Canada, Mexico is strongly opposed to the tariffs and is ready to take its actions in retaliation.

In the United States, President Trump remains steadfast in his decision to impose the tariffs as part of his “America First” policy. Speaking on Truth Social, Trump made it clear that there would be “no room left” for either Canada or Mexico to avoid the tariffs. “There is no room left for Mexico or for Canada. The tariffs, you know, they’re all set. They go into effect tomorrow,” he stated, reaffirming that his administration would move forward with the plan.

Both Canada and Mexico are now focused on protecting their economies and seeking alternative measures to mitigate the impact of US tariffs. At the same time, the global market watches closely as tensions rise between the three neighboring nations, uncertain of how far the trade conflict will escalate. 

The announcement of the tariffs has already had an impact on the financial markets. US stock prices dropped significantly during the afternoon trading session, and both the Canadian dollar and the Mexican peso saw declines. The looming trade conflict has raised concerns about the potential ripple effects across North America and the global economy. Analysts fear that this escalation could lead to broader economic consequences for the region, particularly in the wake of ongoing trade disputes with other countries, including China.