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By Aila Slisco
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Canadian Prime Minister Justin Trudeau promised to impose retaliatory 25 percent tariffs on U.S. goods after President Donald Trump confirmed that U.S. tariffs on Canadian goods would move forward.
Newsweek reached out for comment to the White House via email on Monday night.
Why It Matters
During his 2024 presidential campaign, Trump repeatedly promised to impose steep tariffs on the country's global trading partners, including close allies like Canada and Mexico.
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The pledge prompted criticism from economists and analysts who argued that the financial impact of the tariffs would rest on the shoulders of American consumers. Trump acknowledged last month that Americans might feel "some pain" over the tariffs but insisted that it would be "worth the price that must be paid."
What To Know
Trump said during a White House news conference on Monday that 25 percent tariffs on goods from Canada and Mexico would be imposed on Tuesday, while a 10 percent tariff would be placed on Canadian energy products. The tariffs were previously delayed after both countries agreed to address immigration issues at their respective U.S. borders.
Trudeau, in a statement issued hours later, argued that there was "no justification" for Trump's tariffs and said that Canada would quickly respond with its own tariffs in addition to other "non-tariff measures."
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"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," Trudeau said.
"Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures," he added. "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."
Trudeau went on to argue that Trump's tariffs would only cause Americans to "pay more for groceries, gas, and cars, and potentially lose thousands of jobs," while adding that the scheme would "disrupt an incredibly successful trading relationship" and "violate the very trade agreement that was negotiated by President Trump in his last term."
What People Are Saying
Trump, during his White House press conference on Monday: "They're going to have to have a tariff. So, what they'll have to do is build their car plants, frankly, and other things in the United States—in which case, they have no tariffs... I would just say this to people in Canada or Mexico, if they're going to build car plants, the people that are doing them are much better off building here, because we have the market... I think it's going to be very exciting. Very exciting for the automobile companies."
Chrystia Freeland, a member of Canadian parliament and the country's former finance minister, during an MSNBC interview: "If these tariffs are put in place, it is going to hurt Americans ... You are going to be putting tariffs, a tax, on the oil and gas and electricity that we sell you. Totally absurd. Your grocery prices are gonna go up, because you know what you need to grow food in the United States? You need fertilizer, and 80 percent of it comes from Canada. And you're gonna put a 25 percent tax on it?"
Ontario Premier Doug Ford, threatening to cut off Canadian energy to the U.S. in response to Trump's tariffs on Monday: "If they want to try to annihilate Ontario, I will do everything—including cutting off their energy—with a smile on my face. And I'm encouraging every other province to do the same... They rely on our energy, they need to feel the pain."
What Happens Next
The U.S. tariffs on Canada are expected to go into effect on Tuesday and will likely be quickly followed by Canadian tariffs on the U.S., while other countries may also respond to Trump with retaliatory tariffs. The impact of the tariffs on the economy remains to be seen.
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