OTTAWA, Feb 1 (Reuters) - Prime Minister Justin Trudeau announced on Saturday that Canada will retaliate against President Trump's actions with 25% tariffs on a variety of U.S. imports. Trudeau cautioned Americans that these measures would have tangible consequences for them.
As tensions between the historic allies, who share the world's longest land border, continue to deteriorate, Trudeau disclosed at a news conference that tariffs on C$155 billion ($107 billion) worth of U.S. goods will be imposed. Initially, tariffs on C$30 billion will be effective on Tuesday, coinciding with Trump's tariffs, and tariffs on the remaining C$125 billion will take effect in 21 days.
Trudeau's statement came shortly after Trump's decision to impose 25% tariffs on Canadian and Mexican imports and 10% on Chinese goods, potentially igniting a trade conflict with repercussions for global growth and inflation.
Trump also declared a 10% tariff on all energy imports from Canada.
Trudeau outlined that the tariffs would encompass American beer, wine, bourbon, fruits, fruit juices, including orange juice from Florida, as well as clothing, sports equipment, and household appliances.
Ahead of the implementation of tariffs, Trudeau emphasized potential risks for Americans in a press conference in Ottawa, warning, Tariffs against Canada will put your jobs at risk, potentially leading to the closure of American auto assembly plants and other manufacturing facilities. They will increase costs for you, affecting food prices and gas expenses.
Beyond tariffs, Canada is exploring non-tariff measures concerning critical minerals, energy procurement, and other partnerships, Trudeau mentioned.
The U.S.-Canada border, spanning 9,000 km (5,600 miles), facilitates over $2.5 billion in daily trade, especially in energy and manufacturing sectors, as per Canadian government data from 2023.
In 2023, close to C$550 billion worth of goods and services were exported to the U.S. from Canada, constituting more than three-fourths of its total exports. Energy made up 30% of exports, with manufacturing adding approximately 15% to shipments across the border.
Exports to the U.S. represent about 17.8% of Canadian gross domestic product and sustain over 2.4 million jobs in Canada.
The tariff imposition coincides with Canada navigating a political crisis and a leadership contest within Trudeau's Liberal Party.
Trudeau, confronted with waning approval ratings, confirmed his intention to step down after nine years in office, once a new party leader is elected. Recent opinion polls suggest that the opposition Conservatives may secure a strong victory in the forthcoming election.
Surrounded by his foreign affairs and finance ministers, a solemn Trudeau reminisced about the shared history between the two nations.
From the beaches of Normandy to the mountains of the Korean Peninsula, from the fields of Flanders to the streets of Kandahar, we have fought and died alongside you during your darkest hours," he said. "We've constructed the most successful economic, military, and security alliance the world has witnessed.
Encouraging Canadians to support domestic products and opt for local vacations over U.S. travel, Trudeau affirmed, We didn't seek this confrontation, but we will stand firm.