[Video] Trade Disputes Escalate As Canada Slaps 25% Tariffs on C$155 Billion of US Goods

The New Diplomat
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By Abiola Olawale

Canadian Prime Minister Justin Trudeau has announced a 25% retaliatory tariff on C$155 billion worth of American goods in response to United States President Donald Trump’s imposition of similar tariffs on Canadian imports.

The New Diplomat reports that the latest development comes amid an escalation in trade tensions between the two countries, which share the world’s longest international border and have historically been close allies.

Trudeau’s announcement includes immediate tariffs on C$30 billion worth of goods effective from Tuesday, February 4, 2025.

The Canadian PM also announced that additional tariffs on C$125 billion worth of products will follow after 21 days, a decision he said is to allow Canadian businesses time to find alternatives.

Trudeau made this known during a national address. He said the coming weeks would be difficult for Canadians but that Americans would also suffer from Trump’s actions.

He asserted: “Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities.

“They will raise costs for you, including food at the grocery store and gas at the pump.”

The retaliatory measures target a wide range of American products, including everyday items like beer, wine, bourbon, fruits, vegetables, and various consumer goods.

This move comes after Trump implemented a 25% tariff on Canadian goods, with a 10% tariff specifically on Canadian energy products, citing reasons related to border security and the fentanyl crisis, despite evidence suggesting Canada is not a major source of these issues for the US.

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