After a 30-day delay, the United States has announced its decision to proceed with imposing 25 per cent tariffs on Canadian exports and 10 per cent tariffs on Canadian energy, prompting a sharp response from Ottawa.
In a statement released today, Prime Minister Justin Trudeau condemned the move, calling it “unjustified” and emphasizing that the U.S. administration's actions have no basis.
“Let me be unequivocally clear – there is no justification for these actions,” Trudeau said in his statement.
The U.S. tariffs were originally described by U.S. President Donald Trump as a response to his concerns surrounding the flow of fentanyl across the U.S.-Canada border. While less than one per cent of fentanyl intercepted at the U.S. border originates from Canada, Ottawa has made efforts to curb the crisis.
After Trump agreed to a 30-day delay on the tariffs in January, the Canadian government invested $1.3 billion in new border security measures, including enhanced surveillance and additional personnel. Furthermore, Canada has appointed a Fentanyl Czar, designated transnational criminal cartels as terrorist organizations, and established a Joint Operational Intelligence Cell in cooperation with the U.S. to combat the drug trade.
As a result of these initiatives, fentanyl seizures from Canada have dropped by 97 per cent, from 0.03 pounds in January 2025 compared to December 2024, according to U.S. Customs and Border Protection.
However, Trump announced Monday, March 3 that he would go ahead with the tariffs.
The president's executive order hitting Canada and Mexico with 25 per cent across-the-board tariffs, along with a lower 10 per cent levy on Canadian energy, took effect at 12:01 a.m. EST.
"Tariffs, 25 per cent on Canada and 25 per cent on Mexico, and that’ll start,” Trump said Monday at the White House. "They’re going to have to have a tariff."
Trudeau announced Monday that Canada will impose 25 per cent tariffs on $155 billion worth of American goods. The first phase of the response, targeting $30 billion worth of American imports, began at 12:01 a.m. EST Tuesday, March 4, with the remaining $125 billion of tariffs to follow in 21 days.
“Canada will not let this unjustified decision go unanswered,” Trudeau stated “Our tariffs will remain in place until the U.S. trade action is withdrawn.”
In addition to the tariffs, Canada is in discussions with provinces and territories to explore non-tariff measures should the U.S. decision not be reversed. The Canadian government urged the U.S. to reconsider its stance, stressing that the tariff escalation would harm both countries' economies.
The statement also highlighted the potential negative impacts on American consumers, warning that the tariffs would lead to higher prices on groceries, gasoline, and cars, and could result in the loss of thousands of American jobs.
“Tariffs will disrupt an incredibly successful trading relationship,” Trudeau warned. “They will violate the very trade agreement negotiated by President Trump during his last term.”
Trudeau was set to hold a press conference in Ottawa Tuesday morning with Finance Minister Dominic LeBlanc, Foreign Affairs Minister Mélanie Joly and Public Safety Minister David McGuinty.
With files from The Canadian Press
