Monday, July 6, 2026

Canada imposes retaliatory tariffs on U.S. imports

Canada would begin with a 25 per cent tariff on CA$30 billion worth of U.S. goods, immediately effective Tuesday.

• March 4, 2025
Trump and Trudeau
Trump and Trudeau [Credit: Reuters]

Canadian Prime Minister Justin Trudeau said on Tuesday Canada would impose 25 per cent tariffs on CA$155 billion (about $107 billion) worth of U.S. goods.

According to Mr Trudeau, this will happen if the U.S.  proceeds with its proposed tariffs on Canadian products.

Mr Trudeau made the remarks after the  U.S. President, Donald Trump, told reporters earlier on Monday that 25 per cent tariffs on Canadian and Mexican imports would start on Tuesday.

Canada would begin with a 25 per cent tariff on CA$30 billion worth of U.S. goods, immediately effective on Tuesday.

This would be followed by tariffs on the remaining CA$125 billion of American products in 21 days, Mr Trudeau said in a statement.

“Our tariffs will remain in place until the U.S. trade action is withdrawn,’’ he noted.

He added that the Canadian government was in active and ongoing discussions with provinces and territories to pursue several non-tariff measures.

On the same day, Canada’s Ontario Premier Doug Ford said that his province was ready to cut off electricity and critical mineral supply to the U.S. in response to the expected U.S. tariffs.

Mr Ford, also the chair of the Council of the Federation of Canada’s Premiers, said Ontario is a major electricity exporter to the U.S. states of New York, Michigan and Minnesota.

“If they want to try to annihilate Ontario, I will do anything, including cutting off their energy, with a smile on my face,’’ he said.

Mr Ford also threatened to halt exports of Ontario nickel during an interview with NBC News on Monday afternoon.

“We will respond strongly and we don’t want to.

“On the critical minerals, I will stop shipments going into the U.S. for nickel. I will shut down manufacturing because 50 per cent of the nickel you use is coming from Ontario,’’ Mr Ford said.

At her morning news conference, Mexican President Claudia Sheinbaum called for temperance, serenity and patience as the tariffs loomed.

This was ahead of Mr Trump’s announcement on Monday, as she reassured the public that her administration has multiple contingency plans in place.

Mexico has prepared “Plan A, Plan B, Plan C, and Plan D’’ the president noted, though she did not provide further details.

While she did not rule out direct communication with Mr Trump, Ms Sheinbaum said Mexico was calm and prepared.

“Whatever his decision is, we will make our decisions, and there is a plan and unity in Mexico,’’ she said.

On February 1, Mr Trump signed an executive order to impose a 25 per cent tariff on imports from Mexico and Canada, with a 1 per cent tariff increase specifically for Canadian energy products.

On February 3, Mr Trump said the announced tariffs would be deferred for one month, allowing more time for negotiations.

He has claimed that tariffs were intended to pressure the two U.S. neighbours to intensify their efforts against fentanyl trafficking and curb illegal immigration.

Both countries have taken steps to address his concerns.

Mr Trudeau said in his statement that Canada has appointed “a Fentanyl Czar’’ among other measures, to combat drug trafficking.

Mexico ordered the deployment of 10,000 National Guard troops to its shared border with the U.S. to curb drug trafficking and mass immigration. 

(Xinhua/NAN) 

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