Canada has announced retaliatory tariffs of 25% on U.S. imports worth 155 billion Canadian dollars (about 107 billion U.S. dollars) following Washington’s planned trade action against Canadian products.
Prime Minister Justin Trudeau said the first phase of tariffs—affecting 30 billion Canadian dollars worth of U.S. goods—would take effect immediately on Tuesday. The remaining tariffs, covering 125 billion Canadian dollars of American products, will be imposed in 21 days unless the U.S. withdraws its measures.
“Our tariffs will remain in place until the U.S. trade action is withdrawn,” Trudeau stated, adding that Canada is also considering non-tariff measures in collaboration with provinces and territories.
Ontario Premier Doug Ford escalated the response, warning that his province might cut off electricity and critical mineral exports to the U.S. if the tariffs proceed. Ontario supplies power to states like New York, Michigan, and Minnesota, and Ford signaled a willingness to disrupt these exports.
“If they want to annihilate Ontario, I will do anything, including cutting off their energy—with a smile on my face,” Ford told NBC News. He also threatened to halt nickel exports, noting that Ontario supplies half of the nickel used in U.S. manufacturing.
Meanwhile, Mexican President Claudia Sheinbaum urged calm, saying her government has multiple contingency plans ready in response to the looming tariffs.
On Feb. 1, U.S. President Donald Trump signed an executive order imposing 25% tariffs on Canadian and Mexican imports, with an additional 10% tariff hike on Canadian energy products. Though Trump later deferred the tariffs by one month for further negotiations, he insisted the measures aim to pressure both countries into stricter actions against fentanyl trafficking and illegal immigration.
In response, Canada has appointed a “Fentanyl Czar” to tackle drug smuggling, while Mexico has deployed 10,000 National Guard troops along its northern border.
Despite these efforts, tensions remain high as all three nations brace for the economic fallout of the escalating trade dispute.
