U.S. President Donald Trump on Jan. 31, 2025. Image: C-SPAN video capture
The United States is moving ahead with blanket tariffs on Canadian goods today, with the Canadian government responding in kind as trade relations between the two countries deteriorate.
President Donald Trump confirmed Monday that the long-threatened 25 percent levy on Canadian exports is set to take effect at midnight. Speaking to reporters at the White House, Trump dismissed any possibility of last-minute negotiations, saying, “No room left for Mexico or Canada. They’re all set, they go into effect tomorrow.”
In response, Prime Minister Justin Trudeau announced that Canada’s first round of retaliatory tariffs will also begin today, targeting $30 billion worth of U.S. goods. A second wave, covering an additional $125 billion in products, is scheduled to take effect in three weeks.
“Our tariffs will remain in place until the U.S. trade action is withdrawn,” Trudeau said in a statement Monday evening. “Should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures.”
The U.S. president justified his decision by claiming Canada has allowed fentanyl and other drugs to enter the U.S. unchecked, despite government data showing the vast majority of fentanyl seizures occur at the southern border. Trump also pointed to what he called unfair trade practices, arguing that the U.S. has been a “laughingstock” for years.
The federal government initially drafted its countermeasures in response to Trump’s tariff threats last month. While some retaliatory tariffs are set to take effect today, Canada has signaled it is prepared to escalate if the U.S. does not reverse course.
Foreign Affairs Minister Mélanie Joly and Finance Minister Dominic LeBlanc have been in discussions with their U.S. counterparts in an effort to prevent further economic fallout. Joly said Monday that “efforts are still ongoing,” but the latest developments suggest both sides are digging in.
Trudeau is expected to address the issue further at a news conference this morning, joined by several cabinet ministers.
