Canada has announced a significant retaliatory tariff package targeting $155 billion worth of U.S. goods in response to former President Donald Trump’s decision to impose 25% tariffs on most Canadian imports and 10% on energy products, effective February 4, 202512571119. Prime Minister Justin Trudeau outlined a two-phase approach:
Immediate Retaliation ($30 billion):
25% tariffs take effect Tuesday, February 4, 2025, coinciding with U.S. measures.
Targets include alcohol (bourbon, wine, beer), agricultural goods (orange juice, peanut butter, fruits/vegetables), and consumer products like perfumes, clothing, and footwear25711.
Second Phase ($125 billion):
Additional tariffs begin 21 days later (February 25, 2025) to allow supply chains to adjust.
Expands to household goods, furniture, sports equipment, lumber, plastics, and natural resources12719.
Key Details:
Strategic Targeting: Products from politically sensitive U.S. states (e.g., Florida orange juice, Kentucky peanut butter) were selected to pressure Republican lawmakers2517.
Public Mobilization: Canadians are urged to boycott U.S. goods and services, with provincial leaders like British Columbia’s David Eby removing American alcohol from government stores611.
Economic Impact: The Bank of Canada warns a prolonged trade war could shrink GDP by 3%, risking recession37.
Context:
Trudeau framed the tariffs as a reluctant but necessary defense of Canadian interests, emphasizing that Canada “did not seek this trade war” but would not back down2511. The measures align with Mexico’s retaliatory tariffs, though no formal coordination exists510.
The U.S.-Canada trade relationship, worth $1.3 trillion annually, faces unprecedented strain, with experts warning of higher consumer prices and supply chain disruptions3718. Canada has also pledged to challenge the tariffs under USMCA dispute mechanisms1114.
