Canada Targets U.S. Red States With 25% Retaliatory Tariffs Amid Trump’s Trade War

February 2, 2025
The tariffs would match Trump’s own 25% tax against their imports.
Canada has responded to the Trump Administration’s emerging trade war by imposing their own tariffs against the United States.
The move comes after President Trump unleashed plans for 25% tariffs on all Canadian and Mexican imports, citing immigration and drug trafficking as the reason. According to Reuters, Canada’s Prime Minister, Justin Trudeau, announced the retaliatory tariffs on American goods set to go into effect on Feb. 4.
Trudeau spoke at a news conference on Feb. 1 stating that the move would severely impact both parties. With Trump also imposing a 10% tariff on energy imports from Canada, Trudeau warned of the immediate consequences.
“Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities,” Trudeau said at the press conference. “They will raise costs for you, including food at the grocery store and gas at the pump.”
However, Trudeau also asserted that Canada did not want to resort to these measures. The outgoing leader expressed how their own tariffs defended the country against Trump’s controversial plan. Trudeau stated he would “not back down in standing up for Canadians.”
According to BBC, these taxes will reportedly impact over $100 billion of U.S. goods, ranging from alcoholic products, clothing, fruits, and appliances. With an additional 10% tariff also on China, Americans face an uncertain future regarding the cost of goods from these countries.
Canadian officials also said they would target products from red U.S. states. The Liquor Control Board of Ontario will remove American alcohol from red states from its shelves in response to Trump’s tariffs on Canada. Ontario Premier Doug Ford has directed that the products be pulled starting Feb. 3, when the tariff is set to take effect.
The White House deemed the tariffs “necessary to hold China, Mexico, and Canada accountable for their promises to halt the flood of poisonous drugs into the United States.” However, many economists believe the emerging trade war will incur heavy inflation, immediately hurting Americans’ pockets.
Trump also warned of escalated tactics if the countries responded with taxes of their own. The administration has yet to reveal heightened tariffs or other plans since Canada imposed the new tariffs.
However, Canada has also revealed it will work with Mexico to thwart this effort. In the meantime, China has also said it would challenge Trump’s tariffs with the World Trade Organization.
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