Canada will retaliate against President Donald Trump's new tariffs with 25% levies on a raft of U.S. imports, Prime Minister Justin Trudeau said on Saturday, warning Americans that Trump's actions would have real consequences for them.
As the longstanding allies, who share the world's longest land border, hit another low, Trudeau said in a news conference that he was imposing the duties on C$155 billion ($107 billion) in U.S. goods.
The ones amounting to C$30 billion are going to be effective on the same day as Trump's tariffs, and those on the remaining C$125 billion will take place 21 days from now.
Trudeau made this announcement hours after Trump ordered 25% tariffs on imports from Canada and Mexico and 10% on all goods produced in China. Economists warn that it could lead to a trade war that would slow global growth and jump-start inflation.
Trump said he would institute 10% tariff on all imports of energy from Canada.
The Canadian leader said tariffs would include American beer, wine, and bourbon, in addition to fruits and fruit juices, which would also include orange juice from Trump's home state of Florida. Canada would also target goods including clothing, sports equipment, and household appliances.
The coming weeks will be tough for Canadians, Trudeau said, but Americans will equally suffer from Trump's actions.
"Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities," Trudeau said, addressing U.S. citizens during a press conference in Ottawa.
"They will raise costs for you, including food at the grocery store and gas at the pump."
Canada is considering non-tariff measures, potentially relating to critical minerals, energy procurement and other partnerships, Trudeau said.
Over $2.5 billion in trade passes through the 9,000 km (5,600-mile) U.S.-Canada border, which is particularly an energy and manufacturing corridor, according to data the Canadian government publishes.
Canada exported close to C$550 billion in goods and services to the U.S. in 2023, or more than three-fourths of its total exports.
Energy accounted for 30% and manufacturing contributed around 15% of exports south of the border.
Exports to the United States make up about 17.8 percent of Canadian gross domestic product and over 2.4 million jobs in Canada.
The duties come as the country faces a political crisis with a leadership contest within Trudeau's Liberal Party.
With his approval ratings in the basement, Trudeau announced that he would step down after nine years as prime minister following the election of a new party leader.
According to recent opinion polls, the opposition Conservatives are likely to sweep the next election with a landslide majority.
Speaking from the stage, flanked by his foreign affairs and finance ministers, a subdued Trudeau reminded everyone of the decades of relations between the two countries.
"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 built the most successful economic, military and security partnership the world has ever seen."
Trudeau told Canadians to "buy Canadian and take your next vacation here rather than heading across the border".
"We didn't ask for this but we will not back down," he said.
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