Hugh Dougherty
Sat 1 February 2025
Patrick Doyle / REUTERS
Canadian prime minister Justin Trudeau launched a broadside at Donald Trump’s 25% tariffs late Saturday, telling him they will cost American jobs—and revealing that the new president is refusing to take his calls.
The northern neighbor’s leader scoffed at Trump’s claim that he was acting because of fentanyl crossing the border, announced his own 25% tariffs, and warned Canada has “leverage” including its vast mineral resources and oil industry.
Speaking hours after the Star-Spangled Banner was booed at a hockey game in Ottawa, Trudeau spelled out an aggressive response of his own to go toe-to-toe with Trump on the sudden trade sanctions. At almost exactly the same time, Mexican president Claudia Sheinbaum imposed retaliatory tariffs to match Trump’s on her country—meaning America, for the first time in history, is in a trade war with its northern and southern neighbors.
Trudeau, who went toe-to-toe with Trump repeatedly during his first term, had gone to Mar-a-Lago in November but now says they haven's spoken since Trump took office. / Dan Kitwood / Getty Images
Trump had signed an executive order putting 25% on almost all imports and 10% on energy earlier on Saturday afternoon, claiming that Canada was letting drugs and illegal immigrant crossing the border. The same tariffs apply to Mexico but not to China. Even the mention of the tariffs on Friday had caused a market sell-off, leading to fears of a stock market plunge on Monday.
But Trudeau said he wanted to speak directly to Americans and said, “Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly and other manufacturing facilities. They will raise costs for you, including food at the grocery store and gas at the pump.”
He added, “Americans need our oil and gas, they need our car parts, they need our agricultural products,” he said bluntly. “There are many things which Canada produces which we sell to America which they depend upon for their economy. The tariffs on 25% of everything that Canada produces will hurt Americans, including consumers.
“It will be a big challenge for, for example, for the car industry. We will be there to encourage Americans to go back on these tariffs. We do not want to be in this situation, to be clear—this is the choice of America."
He added: “The coming weeks will be difficult for Canadians. The coming weeks will be difficult for Americans. We don’t want to be here. We didn’t ask for this. But we won’t back down.”
Trudeau said he had been trying to speak to Trump “since the inauguration” and said, “I hope to speak to him soon.” The Canadian prime minister—who is essentially acting in the job after saying he was waiting for his party to replace him with a new leader—had gone to Mar-a-Lago in November, only for Trump to mock that he wanted to make the country the 51st state and troll Trudeau as “Governor Trudeau.”
Trudeau tried to thread a needle to suggest that Trump was acting without American support, saying, “I think Canadians are a little perplexed as to why our closest friends and neighbors are choosing to target us. I don’t think there’s a lot of Americans waking up in the morning thinking ‘damn Canada, let’s go after Canada.‘”
Mexico's President Claudia Sheinbaum is also taking tit-for-tat measures on American imports, putting Trump in a trade war on two borders. / Henry Romero / REUTERS
The move to tariff American imports to Canada on a tit-for-tat basis, with an emphasis on products from red states such as bourbon, will hit $155 billion of U.S. goods, a significant blow to American exporters. But it is the impact for American consumers and workers which is Canada’s most potent tool: Trump was elected on the back of anger at persistent inflation, but now risks significant price increases on consumer goods across the board.
And the American motor manufacturing industry, especially in Michigan, where Trump flipped the state Republican, is highly integrated with Canada’s, relying on it for key parts. The prospect of factories jacking up prices or running out of parts would be a significant crisis for Trump.
Mexico has its own weapons, including guacamole: avocados will almost certainly go up in price by as much as 25% days before the Super Bowl.
Justin Trudeau announces 25% retaliatory tariffs on US goods after Trump's tariffs hit Canada
Katherine Tangalakis-Lippert
Updated Sat 1 February 2025
Canadian Prime Minister Justin Trudeau on Saturday announced retaliatory tariffs against the US.
Canada will impose a 25% tariff on US goods, some effective Tuesday and others in 3 weeks.
The tariffs came after Donald Trump implemented 25% tariffs on Canadian goods imported to the US.
Canadian Prime Minister Justin Trudeau on Saturday announced retaliatory tariffs against the US in response to President Donald Trump's tariffs on Canadian imports, which were implemented earlier in the day.
"Tonight, I am announcing Canada will be responding to the US trade action with 25% tariffs against 155 billion dollars worth of American goods," Trudeau said during a press conference. "This will include immediate tariffs on $30 billion worth of goods as of Tuesday, followed by further tariffs on $125 billion worth of American products in 21 day's time to allow Canadian companies and supply chains to seek to find alternatives."
Trudeau said the tariffs will apply to everyday items shipped from the US to Canada, including alcohol, fruits, clothing, and shoes, as well as major consumer products like household appliances and furniture, and materials like lumber and plastics.
"And as part of our response, we are considering with the provinces and territories several non-tariff measures, including some relating to critical minerals, energy procurement and other partnerships," Trudeau said.
Canada's retaliatory measures come after Trump made good on an oft-repeated campaign pledge, implementing 25% tariffs on Canadian goods imported to the US in what he described as an effort to curb the fentanyl crisis.
A 2022 report by a congressional commission on combatting synthetic opioids found Canada is not a major source of fentanyl or other synthetic opioids to the United States.
Trudeau, who earlier this month announced his resignation as leader of Canada's Liberal Party, said during the Saturday press conference that he had not spoken to Trump since his inauguration on January 20 but pledged to remain available for negotiations over the countries' trade relations.
"If President Trump wants to usher in a new golden age for the United States, the better path is to partner with Canada, not to punish us," Trudeau said. "Canada has critical minerals, reliable and affordable energy, stable democratic institutions, shared values, and the natural resources you need. Canada has the ingredients necessary to build a booming and secure partnership for the North American economy, and we stand at the ready to work together."
Representatives for the Trump administration and Trudeau's office did not immediately respond to a request for comment from Business Insider.
Late Saturday, in response to Trump's trade moves against the country, Mexican President Claudia Sheinbaum also announced retaliatory 25% tariffs on imported US goods, per Reuters.
BI previously reported economists predict the Chinese government will respond similarly, with retaliatory tariffs, limiting exports of raw materials used for semiconductor production, or other changes to its trade policies to squeeze the US economy.
Business Insider
Katherine Tangalakis-Lippert
Updated Sat 1 February 2025
Canadian Prime Minister Justin Trudeau on Saturday announced retaliatory tariffs against the US.
Canada will impose a 25% tariff on US goods, some effective Tuesday and others in 3 weeks.
The tariffs came after Donald Trump implemented 25% tariffs on Canadian goods imported to the US.
Canadian Prime Minister Justin Trudeau on Saturday announced retaliatory tariffs against the US in response to President Donald Trump's tariffs on Canadian imports, which were implemented earlier in the day.
"Tonight, I am announcing Canada will be responding to the US trade action with 25% tariffs against 155 billion dollars worth of American goods," Trudeau said during a press conference. "This will include immediate tariffs on $30 billion worth of goods as of Tuesday, followed by further tariffs on $125 billion worth of American products in 21 day's time to allow Canadian companies and supply chains to seek to find alternatives."
Trudeau said the tariffs will apply to everyday items shipped from the US to Canada, including alcohol, fruits, clothing, and shoes, as well as major consumer products like household appliances and furniture, and materials like lumber and plastics.
"And as part of our response, we are considering with the provinces and territories several non-tariff measures, including some relating to critical minerals, energy procurement and other partnerships," Trudeau said.
Canada's retaliatory measures come after Trump made good on an oft-repeated campaign pledge, implementing 25% tariffs on Canadian goods imported to the US in what he described as an effort to curb the fentanyl crisis.
A 2022 report by a congressional commission on combatting synthetic opioids found Canada is not a major source of fentanyl or other synthetic opioids to the United States.
Trudeau, who earlier this month announced his resignation as leader of Canada's Liberal Party, said during the Saturday press conference that he had not spoken to Trump since his inauguration on January 20 but pledged to remain available for negotiations over the countries' trade relations.
"If President Trump wants to usher in a new golden age for the United States, the better path is to partner with Canada, not to punish us," Trudeau said. "Canada has critical minerals, reliable and affordable energy, stable democratic institutions, shared values, and the natural resources you need. Canada has the ingredients necessary to build a booming and secure partnership for the North American economy, and we stand at the ready to work together."
Representatives for the Trump administration and Trudeau's office did not immediately respond to a request for comment from Business Insider.
Late Saturday, in response to Trump's trade moves against the country, Mexican President Claudia Sheinbaum also announced retaliatory 25% tariffs on imported US goods, per Reuters.
BI previously reported economists predict the Chinese government will respond similarly, with retaliatory tariffs, limiting exports of raw materials used for semiconductor production, or other changes to its trade policies to squeeze the US economy.
Business Insider
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