The trade war between Canada and United States has started on Tuesday morning after Trudea's government announced retaliatory 25% imports tariffs on U.S. goods worth C$155 billion.
Canada was responding on Trump's administration unjustified 25% imports tariffs which are imposed on Canadian exports,and 10% on energy product exports from Canada which commenced on Tuesday,4 March 2025.
In the first round,Canada announced 25 percent tariffs worth C$30 billion on goods imported from the United States(U.S.) which came into effect in the early hours of Tuesday morning on 4 March 2025.
Canada's new imports tariffs will apply on products such as orange juice,peanut butter,wine,spirits,beer,coffee,appliances,apparel,footwear,motorcycles,cosmetics,and certain paper products.
Canada clarified that their countermeasures will remain in place until the U.S. eliminates its tariffs against Canadian goods.
Canada maintained that its countermeasures do not apply to U.S. goods that in transit to Canada on the day on which they came into force.
Canada also announced that it will implement a second round of tariffs on U.S. imports worth C$125 billion and that second round of tariffs will be subjected to a 21-day comment period prior to implementation.
The second round of tariffs will apply on products such as electric vehicles,trucks and buses,certain fruits and vegetables,aerospace products,electronics,steel,beef,pork and dairy.
Canada revealed that all options remain on the table as the government considers additional measures,including non-tariff options,should the U.S. continue to apply unjustified tariffs on Canada.
The Canadian Finance Minister admitted that the imports tariffs imposed on his country will have negative impact on the American economy and people,and will affect trade agreements between two countries.
"The U.S. administration's decision to impose tariffs on Canada will have devastating consequences for the American economy and people.As a result of the tariffs imposed by the U.S.,Americans will pay more at grocery stores and gas pumps,and potentially lose thousands of jobs.U.S. tariffs will also disrupt an incredibly successful trading relationship and violate the Canada-U.S.-Mexico(CUSMA) trade agreement that was renegotiated by President Trump in his last term,"said Dominic LeBlanc,Canadian Minister of Finance.
Canada is the top customer for U.S. goods and services exports and a critical supplier of goods and services integral to the U.S. economy,and Canada is buying more U.S. goods than China,Japan,France and the United Kingdom combined.