Montreal, Canada – In a swift response to U.S. tariff hikes, Prime Minister Justin Trudeau announced Monday that Canada will impose retaliatory tariffs on American imports, calling Washington’s actions unjustified.
“If American tariffs take effect tonight, Canada will respond immediately,” Trudeau stated. “Starting at 12:01 a.m. EST tomorrow, we will enforce 25 percent tariffs on $155 billion worth of U.S. goods.”
The move comes as U.S. President Donald Trump dismissed any last-minute deal with Canada and Mexico, pressing ahead with sweeping tariffs while also increasing duties on Chinese imports. Trump had initially proposed—then temporarily paused—tariffs on Canadian and Mexican imports in February, citing concerns over illegal immigration and drug trafficking. With the halt set to expire Tuesday, the White House confirmed there would be no further negotiations.
Financial markets reacted negatively to the announcement, with U.S. stocks tumbling after Trump declared there was “no room left” for Canada and Mexico to avoid fresh levies. The administration also confirmed a tariff hike on Chinese goods, raising an existing 10 percent duty to 20 percent.
The decision threatens to disrupt supply chains across North America, particularly in key industries like automotive manufacturing and construction materials, potentially driving up consumer prices. Critics argue the move contradicts Trump’s campaign promises of reducing costs for American households.
On Monday, Trump defended the tariffs, stating that Canada and Mexico had alternatives. “They’ll have to build their car plants and other things in the United States—then there are no tariffs,” he said.
As tensions escalate, analysts warn of a prolonged trade battle that could reshape economic ties between North America’s biggest trading partners.
