Prime Minister Justin Trudeau issued a sharp response today after the United States officially imposed sweeping tariffs on Canadian exports and energy, escalating tensions between the two trading partners and setting the stage for a new North American trade war.
In a statement from his office, Trudeau condemned the U.S. decision, calling it “unjustified” and warning that Canada would respond in kind.
“Today, after a 30-day pause, the United States administration has decided to proceed with imposing 25 per cent tariffs on Canadian exports and 10 per cent tariffs on Canadian energy,” Trudeau said. “Let me be unequivocally clear – there is no justification for these actions.”
Trudeau emphasized that the U.S. justification for the tariffs—citing concerns over fentanyl trafficking—was not supported by evidence. The Prime Minister highlighted that less than 1 per cent of fentanyl seized at the U.S.-Canada border originates from Canada, and pointed to extensive efforts by Canadian authorities to curb cross-border drug smuggling.
Canada has implemented a $1.3 billion border enforcement plan, which includes aerial surveillance, additional border officers, and intelligence-sharing initiatives with U.S. agencies. According to Trudeau, these efforts have led to a 97 per cent reduction in fentanyl seizures from Canada between December 2024 and January 2025.
Effective at 12:01 a.m. EST on Wednesday, Canada will impose 25 per cent tariffs on $30 billion worth of American goods, with further tariffs covering an additional $125 billion in U.S. exports set to take effect within 21 days. Trudeau made clear that these tariffs would remain in place until the U.S. trade action is reversed.
The Prime Minister also revealed that his government is in talks with provincial and territorial leaders to explore non-tariff measures that could further target American imports if the dispute drags on.
Trade experts are warning that the escalating tariff battle could disrupt key supply chains and significantly increase costs for consumers and businesses on both sides of the border. The Canadian tariffs will target a range of American products, though a full list has not yet been published.
In a Tuesday interview with Fox Business, U.S. Commerce Secretary Howard Lutnick suggested that Washington is open to negotiating a compromise, saying the U.S. could “meet Canada and Mexico in the middle,” with further announcements expected as early as Wednesday.
However, the tariffs officially took effect at midnight after President Donald Trump signed an executive order triggering 25 per cent tariffs on Canadian and Mexican exports, including a 10 per cent tariff specifically targeting Canadian energy products such as oil and electricity.
Trudeau also warned that the U.S. move violates the existing North American trade agreement, which was negotiated during Trump’s previous term. “Tariffs will disrupt an incredibly successful trading relationship,” Trudeau said. “They will violate the very trade agreement that was negotiated by President Trump in his last term.”
As both sides brace for economic fallout, industry leaders in Canada and the U.S. are urging their respective governments to return to the negotiating table to avoid further damage to a trading relationship worth over $800 billion annually.
For now, with retaliatory tariffs set to hit American products within hours, tensions between Ottawa and Washington are at their highest point in years—raising concerns of broader economic uncertainty across North America.
