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Trudeau announces 25% targeted retaliatory tariffs against U.S.

CanadaSA国际影视传媒檚 retaliation plan will include everyday items such as American beer, wine, bourbon, fruits and more
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Prime Minister Justin Trudeau listens to a question after addressing media following the imposition of a raft of tariffs by U.S. President Donald Trump against Canada, Mexico and China, in Ottawa, Saturday, Feb. 1, 2025. Tariffs of 10 per cent on Canadian energy and 25 per cent on everything else will begin on Feb. 4. THE CANADIAN PRESS/Justin Tang

Prime Minister Justin Trudeau says Canada will hit back with steep, immediate retaliatory tariffs on American goods after U.S. President Donald Trump confirmed he is moving ahead with devastating duties on Canada starting Tuesday.

Trump signed an executive order on Saturday to slap Canada with 25 per cent tariffs SA国际影视传媒 with a lower 10 per cent duty for energy SA国际影视传媒 laying the foundation for an unprecedented trade war with AmericaSA国际影视传媒檚 closest neighbours.

Trudeau held a news conference Saturday evening to announce that Canada will respond with an immediate $30-billion retaliation package, which will be followed by $125 billion in duties on American products in 21 days to give companies and supply chains time to find alternatives.

CanadaSA国际影视传媒檚 retaliation plan will include everyday items such as American beer, wine, bourbon, fruits and fruit juices, including orange juice, along with vegetables, perfume, clothing and shoes, Trudeau said.

Trudeau connected with MexicoSA国际影视传媒檚 President Claudia Sheinbaum and held meetings with cabinet and premiers earlier Saturday.

Trump signed the executive order Saturday at his Mar-a-Lago resort in Florida after spending much of the day at a golf course. It included a retaliation clause that says if Canada responds with duties on American products, the levies could be increased.

In a social media post, Trump said he implemented tariffs against Canada, Mexico and China to stop what he calls the illegal flow of fentanyl and people across AmericaSA国际影视传媒檚 border.

SA国际影视传媒淲e need to protect Americans, and it is my duty as president to ensure the safety of all,SA国际影视传媒 he said.

The volume of drugs and people crossing from Canada into the United States is miniscule compared to Mexico. U.S Customs and Border Protection statistics show less than one per cent of all fentanyl seized comes from the northern border.

In his news conference, Trudeau said he has not been able to personally contact the president about the tariffs.

Addressing the American public at the news conference, Trudeau said the tariffs against Canada will SA国际影视传媒減ut your jobs at riskSA国际影视传媒 by potentially shutting down the American auto and manufacturing sectors.

SA国际影视传媒淭hey will raise costs for you, including at the grocery stores and at the gas pump,SA国际影视传媒 Trudeau said.

NDP Leader Jagmeet Singh said Canadians must SA国际影视传媒渟tand strong and stand together,SA国际影视传媒 while Conservative Leader Pierre Poilievre said SA国际影视传媒渨e must put CANADA FIRSTSA国际影视传媒 in a statement on social media in which he called for Parliament to return to deal with the crisis.

Premiers have disagreed on how Canada should respond. Some say everything must be on the table, while Alberta Premier Danielle Smith and Saskatchewan Premier Scott Moe have said exports of oil and other resources like potash should not be included in retaliation plans.

Smith, who recently visited Trump at Mar-a-Lago, said she was disappointed.

SA国际影视传媒淎lberta will do everything in its power to convince the U.S. president and Congress, as well as the American people, to reverse this mutually destructive policy,SA国际影视传媒 she posted on social media.

Ontario Premier Doug Ford said in a statement that SA国际影视传媒淭rump has chosen to walk away from a trading relationship that for decades has made life better for millions of workers on both sides of the border.SA国际影视传媒

British Columbia Premier David Eby said he directed the provinceSA国际影视传媒檚 liquor distribution branch to immediately stop buying American liquor from red states SA国际影视传媒 those who vote predominantly Republican.

Trudeau emphasized that the country is SA国际影视传媒渋n this togetherSA国际影视传媒 and said no one region should shoulder the impact of TrumpSA国际影视传媒檚 tariffs.

Industry, business organizations and labour unions are sharing their concern that the duties have destroyed decades of goodwill and market integration between the countries. The tariffs will have immediate consequences for Canadian and American livelihoods, they say.

Unifor, CanadaSA国际影视传媒檚 largest private sector union, said Trump has declared a trade war and there must be swift retaliation.

SA国际影视传媒淲e will never forget this act of hostility against our workers, and we must take every measure possible SA国际影视传媒 utilize every ounce of creativity we have SA国际影视传媒 to build a strong, resilient, and diverse economy to never be held hostage by America again,SA国际影视传媒 Unifor National President Lana Payne said in a news release.

The tariff news faced backlash from Canadians, with fans booing during the singing of the U.S. National Anthem before the puck dropped at the Canadian Tire Centre where the Ottawa Senators faced off against the Minnesota Wild Saturday.

Trump pushed ahead with the levies using the International Economic Emergency Powers Act (IEEPA), expanding his earlier declaration of an emergency at the southern border to the north.

IEEPA is a national security statute that gives the U.S. president authority to control economic transactions after declaring an emergency.

While its predecessor, the Trading With The Enemy Act, was used during the Nixon administration to briefly impose a 10 per cent tariff on all imports into the U.S., no president has used IEEPA for tariffs.

Greta Peisch, the former general counsel for the Office of the U.S. Trade Representative, said the move is SA国际影视传媒渘ot only an aggressive tariff action in size and scope, but it is also an aggressive assertion of the presidentSA国际影视传媒檚 power to impose those tariffs.SA国际影视传媒

Trump is testing the boundaries of his power, said Peisch, a partner at Wiley Rein LLP in Washington, D.C. The coming days and weeks will show whether Congress or importers push back.

The order said the lower energy tariff applies to resources such as crude oil, natural gas, natural gas liquids, uranium, coal and critical minerals.

Secretary of Homeland Security Kristi Noem will tell the president if Canada has taken enough steps to alleviate the SA国际影视传媒減ublic health crisis through cooperative enforcement actions,SA国际影视传媒 the order said. Only then will tariffs be removed.

The order doesnSA国际影视传媒檛 clarify what appropriate measures would suffice.

Ottawa put forward a $1.3 billion border security plan to alleviate TrumpSA国际影视传媒檚 concerns. More helicopters and drones are already in the sky and additional boots are on the ground.

Some provinces have also increased law enforcement resources.

Despite what the order states and OttawaSA国际影视传媒檚 efforts made to date, itSA国际影视传媒檚 unlikely that strengthening border security would have made a difference to the president.

Trump himself said Friday that there were no concessions that would stop Canada, Mexico or China from being hit with the levies.

Trump has said that the government should raise more of its revenues from tariffs, pushing aside concerns from economists that duties could stoke inflation after the Republican president campaigned on making life more affordable for Americans.

Scott Bessent, TrumpSA国际影视传媒檚 treasury secretary, has said the president utilizes tariffs in three ways: to remedy unfair trade practices; to raise revenue for the federal government, and to use it as a negotiating tactic.

Experts have said the duties are likely a first step in TrumpSA国际影视传媒檚 plan to rattle Canada and Mexico ahead of a mandatory review of the Canada-U.S.-Mexico Agreement. The trilateral pact was negotiated to replace the North American Free Trade Agreement under the first Trump administration.

During negotiations in 2018, Trump floated the idea of a 25 per cent tariff on the Canadian auto sector, but it was never implemented. However, he did use his national security powers to impose a 25 per cent tariff on steel and a 10 per cent tariff on aluminum imports.

Canada and Mexico were eventually able to negotiate exemptions.

SA国际影视传媒 With files from Aaron Sousa and Lisa Johnson in Edmonton, Joe Bongiorno in Montreal and The Associated Press

Kelly Geraldine Malone, The Canadian Press

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