Ottawa, February 2025 — The Canadian government has announced retaliatory tariffs after U.S. President Donald Trump signed an executive order imposing a 25% tariff on most Canadian imports. The U.S. decision, which also includes a 10% tariff on Canadian energy exports, is part of broader trade measures affecting Canada, Mexico, and China.
Canada’s Countermeasures
In response, Canada has announced 25% tariffs on C$155 billion ($106 billion) worth of U.S. goods. The measures will be implemented in two phases:
- Phase 1: Tariffs on C$30 billion worth of U.S. imports starting Tuesday.
- Phase 2: Additional tariffs on C$125 billion worth of U.S. products in three weeks.
The Canadian tariffs will target a wide range of American exports, including beer, wine, bourbon, fruits, vegetables, consumer appliances, lumber, and plastics.
Economic Impact
- The U.S.-Canada trade relationship sees over $2.5 billion in daily trade, particularly in energy and manufacturing.
- In 2023, Canada exported approximately C$550 billion worth of goods and services to the U.S., with energy comprising 30% and manufacturing 15% of these exports.
- Exports to the U.S. account for 17.8% of Canada’s GDP and support more than 2.4 million jobs in Canada.
Canadian officials have stated that while the government does not seek escalation, it will take necessary steps to protect Canadian industries and workers. The situation remains fluid as both countries navigate potential economic consequences
