Canada strikes back with 25% tariffs on select US goods

Canada is responding to U.S. tariffs with its own set of duties on imports from the country. Prime Minister Justin Trudeau on Saturday 1 Feb ’25 evening announced the country would institute a 25% tax on $155 billion worth of U.S. imports, as a direct response to 25% tariffs on Canadian goods put in place earlier in the day by U.S. President Donald Trump. The tariffs will be implemented in two phases, according to a press release from Canada’s Department of Finance.

The first tranche will enter into force on Feb. 4, and target $30 billion worth of goods, according to the release. The full list includes orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper. “This first set of countermeasures is about protecting—and supporting—Canada’s interests, workers, and industries,” Dominic LeBlanc, minister of finance and intergovernmental affairs, said in the press release. “These U.S. tariffs are plainly unjustified.”

The second tranche will target $125 billion worth of goods, and the full list will be made available for a 21-day comment period, per the release. The additional list will include products like passenger vehicles and trucks, including electric vehicles, steel and aluminum products, certain fruits and vegetables, aerospace products, beef, pork, dairy, trucks and buses, recreational vehicles, and recreational boats.

“We don’t want to be here. We didn’t ask for this. But we will not back down in standing up both for Canadians, and for the incredible, successful relationship and partnership between Canada and the United States,” Trudeau said at a press conference. “I look forward to working with the American administration on a range of challenging issues that our communities and our world is facing, and I hope that day comes soon.”

In the executive order announcing tariffs against Canada, Trump cited fentanyl and illegal immigration as two of the top reasons for the action. Canadian officials said the country has already taken action to stem the flow of fentanyl and illegal immigration into U.S. through a $1.3 billion border plan.

Trump also warned the U.S. could escalate or broaden its approach to tariffs if Canada were to retaliate.