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Canada to impose retaliatory tariffs on US, warns of job losses: These US products will get expensive

March 4, 2025

09:56

Canada to impose retaliatory tariffs on US, warns of job losses and higher grocery prices

Trudeau responds to US tariffs with $155 billion in countermeasures

Canada will impose tariffs on US imports starting Tuesday in response to levies announced by President Donald Trump, Prime Minister Justin Trudeau confirmed, stating there was no justification for Washington’s actions.

Canada’s tariff plan

“Canada will not let this unjustified decision go unanswered. Should American tariffs come into effect tonight, Canada will, effective 12:01 a.m. EST tomorrow, respond with 25 percent tariffs against $155 billion of American goods—starting with $30 billion worth of goods immediately and tariffs on the remaining $125 billion of American products in 21 days,” Trudeau said in a statement.

Canada’s countermeasures include an immediate 25% tariff on C$30 billion worth of US goods, with the remaining C$125 billion set to follow in three weeks.

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Impact on US consumers and businesses

Trudeau warned that Trump’s tariffs would result in higher costs for Americans and potential job losses.

“Because of the tariffs imposed by the U.S., Americans will pay more for groceries, gas, and cars, and potentially lose thousands of jobs. Tariffs will disrupt an incredibly successful trading relationship. They will violate the very trade agreement that was negotiated by President Trump in his last term,” the Canadian prime minister stated.

Canadian tariffs to target key US industries

The Canadian tariffs will apply to a range of US goods, including:

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  • Dairy products: Milk, cream, butter, cheese, and yogurt
  • Poultry products: Chicken, turkey, and other poultry meat
  • Other goods: Certain types of fat, whey, and modified whey products

These tariffs will remain in place until the US lifts its tariffs on Canada.

Trump: ‘No room left’ for Mexico, Canada to avoid tariffs

Trudeau’s statement follows Trump’s Monday remarks confirming that tariffs on Canada and Mexico would move forward as planned, dismissing hopes for a last-minute agreement.

When asked if Canada and Mexico could avoid fresh tariffs, Trump stated, “No room left for Mexico or Canada.”

“Tomorrow, tariffs—25% on Canada and 25% on Mexico. And that’ll start. What they have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs,” Trump said during a White House press conference.

Since taking office earlier this year, Trump has introduced broad tariffs on imports from major trading partners, including Canada and Mexico, citing concerns over illegal immigration and drug trafficking. While initially delayed, the US has now decided to proceed with the tariffs.