Canada’s Prime Minister Justin Trudeau announced that the country will respond to new tariffs from the US with its own 25% tariffs on American goods. Canada plans to start with tariffs on $30 billion worth of goods immediately and increase them to $155 billion within 3 weeks. This will give Canadian companies time to find alternatives.
Speaking directly to Americans, Trudeau said that working together would be a better path for both countries rather than punishing Canada. Before his speech, he also posted on social media, saying Canada did not want this trade fight but is prepared for it.
Trudeau had discussions with Canadian leaders and planned to speak with Mexico’s President. The US had announced 25% tariffs on Canada and Mexico and 10% on China, set to take effect soon.
Canada’s plan is to introduce tariffs step by step, focusing on American products that Canadians can easily replace. Natural Resources Minister Jonathan Wilkinson explained that the goal is to limit harm to Canadian consumers while pressuring US businesses and politicians to push back against the tariffs.
Some Canadian officials are even considering extreme measures. Chrystia Freeland, a former finance minister and a potential future prime minister, suggested a 100% tariff on Tesla cars to target Trump’s ally, Elon Musk.
Wilkinson also mentioned that Canada might impose export tariffs on key resources like energy and minerals, making them more expensive for the US. However, Alberta’s leadership is against taxing crude oil exports since energy is Canada’s biggest export to the US.
Signs of the impact appeared quickly. US Senator Susan Collins from Maine warned that her state relies on Canadian fuel and that tariffs would be costly. Canada supplies most of Maine’s heating oil, as well as fuel for its airbase.
Canada and the US have long shared a closely connected energy system, with American refineries relying on Canadian oil. If the situation worsens, Canada may look for new buyers.
Wilkinson suggested that this could be more than a short-term issue. Canada is now thinking about investing in better transportation for its exports and building new pipelines to reduce dependence on the US. There’s also a push to expand Canada’s natural gas exports to Asia, offering another route to reduce reliance on its southern neighbor.