U.S. president Donald Trump delivered on his threats to launch a trade war on Canada Saturday. Trump dropped a blanket 25 per cent tariff on Canadian goods entering the U.S. – with some exceptions – to be in place by Tuesday.
Prime Minister Justin Trudeau responded late Saturday night with mirror-image tariffs against U.S. goods crossing the border, saying Canada will impose a 25 per cent tariff on $155 billion of goods.
Trump earlier threatened a phase-two approach that could move the 25 per cent number up if Canada retaliated.
Trump’s administration said the move was partly engineered to punish Canada for the “flow of fentanyl” into the U.S. even though there were just 82 fentanyl seizure events at northern border crossings logged in 2024.
Trump suggested energy imports would see a 10 per cent tariff, despite his country’s demonstrated reliance on Canadian oil and gas.
Trump confirmed the tariffs on X, saying in a post at 3:44 p.m. MST they were launched through the International Emergency Economic Powers Act:
— Donald J. Trump (@realDonaldTrump) February 1, 2025
Trump had been touting false rhetoric around “unfair” trade practices through his re-election campaign, suggesting Canada has been “ripping off” the United States. He has falsely claimed a trade deficit as high as $200 billion, despite 2024 figures from the U.S. Census Bureau showing a deficit closer to $55 billion.
Alberta Premier Danielle Smith posted an official response on X at 3:46 p.m. MST saying: “I am disappointed with U.S. President Donald Trump’s decision to place tariffs on all Canadian goods. This decision will harm Canadians and Americans alike, and strain the important relationship and alliance between our two nations.”
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