Tariffs war: Canada imposes $155-billion tariff package in response to US

'President Trump has declared a trade war with Canada and with Canadian workers'

Tariffs war: Canada imposes $155-billion tariff package in response to US

The federal government is moving forward with 25% tariffs on $155 billion worth of goods in response to U.S. President Donald Trump’s official declaration that the American goods that cross the border into Canada, worth more than $100 billion, will soon be hit with a 25% tariff.

These countermeasures have one goal: to protect and defend Canada’s interests, consumers, workers, and businesses, according to the Canadian government.

“This first set of countermeasures is about protecting – and supporting – Canada’s interests, workers, and industries,” said Dominic LeBlanc, minister of finance and intergovernmental affairs.

“These U.S. tariffs are plainly unjustified. They are detrimental to both American and Canadian families and businesses. Working with provincial, territorial and industry partners, our singular focus is to get them removed as quickly as possible. Until then, our response will be balanced and resolute.”

Reuters previously reported that Canada would impose tariffs of its own amid the threat from Trump.

More retaliatory actions on table for Canada

The first phase of Canada’s tariffs response will include tariffs on $30 billion in goods imported from the U.S., effective Feb. 4,

Here are the products from the U.S. that will be subject to 25% tariffs effective Feb. 4, 2025.

LeBlanc also announced that the government intends to impose tariffs on an additional list of imported U.S. goods worth $125 billion.

These goods will include products such as passenger vehicles and trucks, including electric vehicles, steel and aluminum products, certain fruits and vegetables, aerospace products, beef, pork, dairy, trucks and buses, recreational vehicles, and recreational boats.

The full list will be made available for a 21-day public comment period prior to implementation.

Ottawa also said that options – including non-tariff options – remain on the table as the government considers additional measures should the U.S. continue to apply “unjustified tariffs on Canada”.

“Canada will not stand by as the U.S., our closest and most important trading partner, applies harmful and unjustified tariffs against us,” said Mélanie Joly, minister of foreign affairs. “With these countermeasures, we are defending Canada’s interests and are doing what is best for Canadians and our economy.”

With Canadians expecting job cuts amid the tariffs issue, 80% want the Canadian federal government to support people who would be impacted by job losses, according to a previous report.

Union criticizes Trump over tariffs

The move comes as Unifor has called on the federal government to retaliate against Trump’s imposition of tariffs on Canada.

“I believe Trump has underestimated Canadians. He has failed to realize that he has enraged and united an entire nation that is ready to fight to defend every last job in this country,” said Payne. “We will never forget this act of hostility against our workers, and we must take every measure possible – utilize every ounce of creativity we have – to  build a strong, resilient, and diverse economy to never be held hostage by America again.”

Meanwhile, United Steelworkers International President David McCall criticized Trump on his tariffs against Canada.

“The USW has long called for systemic reform of our broken trade system, but lashing out at key allies like Canada is not the way forward. Canada has proven itself time and again to be one of our strongest partners when it comes to national security, and our economies are deeply integrated,” he said.

He also called on Trump to reverse course on Canadian tariffs “so that we can focus on trade solutions that will serve working families for the long-term”.

“The key to eliminating unfair competition, confronting global overcapacity in crucial sectors, and stemming the flow of unfairly traded products making their way into North America is targeted tariffs on countries that violate our trade laws and greater coordination with our trusted allies – not sweeping actions that undermine crucial relationships.”

Alberta Premier Danielle Smith has also called on the Canadian federal government to take “steps to preserve and strengthen our economic and security partnership with the United States, and to avoid the future imposition of tariffs.”

Top customer for U.S. goods and services

Canada is the top customer for U.S. goods and services exports and a critical supplier of goods and services integral to the U.S. economy, with Canada buying more U.S. goods than China, Japan, France and the United Kingdom combined, according to the Canadian federal government.

Millions of jobs on both sides of the border depend on this relationship, and every day over US$2.5 billion worth of goods and services crosses the border.

Prime Minister Justin Trudeau previously promised to help Trump achieve America's "golden age,” according to another CBS report.

Small business confidence in Canada took a hit in the face of the US tariffs threat, according to a previous report from the Canadian Federation of Independent Business (CFIB).