Canadian Prime Minister Justin Trudeau has vowed a “forceful and immediate response” should US President Donald Trump proceed with implementing 25% tariffs on Canadian goods, as announced on Friday. Trudeau emphasised that Ottawa is working diligently to prevent these tariffs but is prepared to retaliate if the US moves ahead with the plan on Saturday.
“We’re working hard to prevent these tariffs, but if the United States moves ahead, Canada’s ready with a forceful and immediate response,” Trudeau posted on X (formerly Twitter).
No one — on either side of the border — wants to see American tariffs on Canadian goods.
I met with our Canada-U.S. Council today. We’re working hard to prevent these tariffs, but if the United States moves ahead, Canada’s ready with a forceful and immediate response.
— Justin Trudeau (@JustinTrudeau) January 31, 2025
Trump’s decision to impose hefty tariffs comes as part of broader trade actions targeting Mexico, Canada, and China. The US President stated that a 25% tariff would be levied on goods from Mexico and Canada, and a 10% tariff on imports from China. However, he indicated that a reduced rate of 10% would apply to Canadian oil, although wider tariffs on oil and natural gas are expected in mid-February. These remarks have already caused a surge in oil prices.
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Trump, who had been threatening the tariffs for weeks, explained that they were intended to pressure the countries to do more to curb the flow of migrants and fentanyl across the US border. Speaking to reporters in the Oval Office while signing executive orders, Trump acknowledged that the tariffs could lead to higher consumer costs and cause short-term disruptions, news agency Reuters reported. Despite these concerns, he insisted that the levies would proceed as planned.
When asked if there was any possibility of a delay in the tariffs, Trump responded, “No, no. Not right now, no.” He also dismissed the idea that his tariff threats were a negotiating tactic, stating, “No, it’s not… we have big (trade) deficits with, as you know, with all three of them.”
Trump further indicated that additional tariffs would be introduced on European goods, as well as on steel, aluminium, copper, drugs, and semiconductors. “We’re going to be putting tariffs on steel and aluminium, and ultimately copper. Copper will take a little longer,” he added, as quoted by Reuters.
The announcement has triggered volatility in financial markets, with both the Canadian dollar and Mexican peso weakening, while Treasury bond yields rose. Stock markets ended the day lower as investors reacted to the uncertain nature of Trump’s tariff plans.
White House spokesperson Karoline Leavitt reinforced Trump’s stance, stating, “The President will be implementing tomorrow 25% tariffs on Mexico, 25% tariffs on Canada, and a 10% tariff on China for the illegal fentanyl that they have sourced and allowed to distribute into our country, which has killed tens of millions of Americans.” Leavitt also confirmed that the details of the tariffs would be released on Saturday.
During his tenure, Trump imposed similar duties on Chinese goods in 2018 and 2019, which saw delays of two to three weeks as Customs and Border Protection updated their systems to accommodate the new tariffs.
