In a retaliatory move, Canada’s Prime Minister Justin Trudeau, in a statement and a post on X, announced that Canada will implement 25% tariffs on CAD 155 billion of American products. This follows after US President Donald Trump’s new 25% tariffs on imports from Canada entered into force on 4 March 2025.

“Today, after a 30-day pause, the United States administration has decided to proceed with imposing 25% tariffs on Canadian exports and 10% tariffs on Canadian energy. Let me be unequivocally clear – there is no justification for these actions,” said Trudeau. 

“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% tariffs against CAD 155 billion of American goods – starting with tariffs on CAD 30 billion worth of goods immediately, and tariffs on the remaining CAD 125 billion on American products in 21 days’ time. Our tariffs will remain in place until the US trade action is withdrawn, and should US tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures. While we urge the US administration to reconsider their tariffs, Canada remains firm in standing up for our economy, our jobs, our workers, and for a fair deal.”

According to Canada’s Department of Finance, a wide range of US products will face immediate tariffs. This list includes meats, dairy products, grains, wine, beer, motorcycles, apparel, footwear, cosmetics, and select pulp and paper products.

“While less than 1% of the fentanyl intercepted at the US border comes from Canada, we have worked relentlessly to address this scourge that affects Canadians and Americans alike. We implemented a CAD 1.3 billion border plan with new choppers, boots on the ground, more coordination, and increased resources to stop the flow of fentanyl. We appointed a Fentanyl Czar, listed transnational criminal cartels as terrorist organizations, launched the Joint Operational Intelligence Cell, and are establishing a Canada-US Joint Strike Force on organised crime. Because of this work – in partnership with the United States – fentanyl seizures from Canada have dropped 97% between December 2024 and January 2025 to a near-zero low of 0.03 pounds seized by the US Customs and Border Protection,” said Trudeau. 

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

Tariffs on Mexican exports also began the same day, with 2 March amendments extending exceptions for small shipments under USD 800 from Canada and Mexico.

Earlier, on 30 January 2025, US President Donald Trump signed an executive order imposing significant tariffs on key trading partners. A 25% tariff was imposed on imports from Canada and Mexico, alongside a 10% tariff on imports from China.