Trade war: the U.S. imposes tariffs on Canada, Ottawa responds with harsh measures
Starting February 4, 2025, the U.S. will introduce new tariffs on Canadian goods, accusing Ottawa of insufficient efforts to combat drug trafficking. Canada has already announced retaliatory measures.
Photo: pixabay.com
U.S. President Donald Trump has signed an executive order imposing 25% tariffs on Canadian goods starting February 4, 2025, according to the White House.
This decision is part of an expanded state of emergency related to the spread of fentanyl and other illegal substances.
According to Trump, Canada is not taking sufficient measures to curb drug trafficking, which has led to increased mortality rates in the U.S.
The document states that criminal organizations, including Mexican cartels that have set up laboratories in Canada, are smuggling illegal substances across the U.S. northern border.
Trump also warned that if Ottawa implements retaliatory economic measures, the U.S. may expand the list of tariffed goods. He stated that the only way to lift the tariffs would be active Canadian cooperation in the fight against drug trafficking.
The decision has already raised concerns among Canadian authorities and businesses. Experts warn that the new tariffs could harm bilateral trade, which exceeds $700 billion annually.
In response, Canada's Minister of Finance and Intergovernmental Affairs, Dominic LeBlanc, announced the introduction of counter-tariffs on U.S. imports. The information has been published on the official website of the Government of Canada.
The first phase, effective February 4, 2025, covers goods worth $30 billion. Tariffs will apply to beverages, cosmetics, paper products, and other goods.
This decision is a response to the unilateral and unjustified imposition of U.S. tariffs on Canadian products. Canadian authorities have stated that they do not intend to passively observe Washington's actions and are ready to defend their economic interests.
The second phase includes tariffs on additional U.S. goods worth $125 billion. The list includes automobiles, steel, aluminum, meat and dairy products, as well as aerospace products.
Before final approval, the list will be subject to public consultation for 21 days.
The restrictions will not affect shipments already in transit at the time the new rules take effect. The measures will remain in place until the U.S. tariffs are lifted. The full list of affected goods has been published on the Canada Border Services Agency's website.
The Canadian government has also developed a compensation mechanism for businesses to mitigate the impact on local companies.
Authorities do not rule out additional measures if the U.S. continues its economic pressure. Canada remains open to negotiations but is firmly committed to protecting its economic interests.
Earlier, it was reported that Canada is investing $1.3 billion to enhance border security with the U.S., implementing drones, new technologies, and measures against illegal migration.
It was also revealed that after Donald Trump’s statement that Canada should become the 51st state of the U.S., the country has strengthened border security despite his claims of potential economic benefits.