Canadian Prime Minister Justin Trudeau announced on Tuesday that Canada will impose 25 percent tariffs on U.S. goods worth 155 billion Canadian dollars (about 107 billion U.S. dollars).
This decision depends on whether the United States goes ahead with its planned tariffs on Canadian products. Trudeau’s remarks came after U.S. President Donald Trump declared on Monday that 25 percent tariffs on imports from Canada and Mexico would start on Tuesday. At first, Canada will apply a 25 percent tariff on U.S. goods valued at 30 billion Canadian dollars, effective immediately. Tariffs on the remaining 125 billion Canadian dollars of American products will follow in 21 days, according to Trudeau. He stressed that these tariffs will stay in place until the U.S. withdraws its trade actions.
Trudeau also noted that the Canadian government is working with provinces and territories to consider different non-tariff options.
On the same day, Ontario Premier Doug Ford stated he is prepared to cut off electricity and essential mineral supplies to the U.S. in response to the expected tariffs. As a major electricity supplier to New York, Michigan, and Minnesota, Ford said, “If they want to try to destroy Ontario, I will do anything, including cutting off their energy, with a smile on my face.” He also mentioned that he might stop exports of Ontario nickel, claiming that 50 percent of the nickel used in the U.S. comes from Ontario. Meanwhile, Mexican President Claudia Sheinbaum called for calm and prepared as the tariff situation unfolds.
Regardless of his choice, we will proceed with our own decisions, and there is a cohesive strategy in place in Mexico, she stated. On February 1, Trump enacted an executive order imposing a 25% tariff on imports from Mexico and Canada, with a specific 10% increase on Canadian energy products. On February 3, Trump announced that the tariffs would be postponed for one month to allow for further negotiations. He has asserted that the purpose of the tariffs is to compel both neighboring countries to enhance their efforts against fentanyl trafficking and to reduce illegal immigration. Both nations have initiated actions to address his concerns. In his statement, Trudeau mentioned that Canada has appointed a “Fentanyl Czar” among other initiatives to tackle drug trafficking. Mexico has deployed 10,000 National Guard troops to its border with the U.S. to combat drug trafficking and manage mass immigration.
