Ontario Construction News staff writer
U.S. President Donald Trump threatened to escalate his trade war with Canada Tuesday, just hours after imposing his first round of heavy tariffs on all Canadian imports. The new tariffs include a 10 percent duty on Canadian energy products and a 25 percent tariff on all other Canadian goods.
Speaking at a press conference in Ottawa, Trudeau criticized Trump’s actions, stating, “It’s not in my habit to agree with the Wall Street Journal, but Donald, they point out that even though you’re a very smart guy, this is a very dumb thing to do.”
Trudeau announced that Canada would immediately impose 25 percent retaliatory tariffs on $30 billion worth of American products. Additionally, Canada plans to expand these tariffs to cover another $125 billion in U.S. goods in 21 days.
“The moment U.S. tariffs came into effect this morning, so did the Canadian response,” Trudeau wrote on social media following the press conference. “Canada will be implementing 25 per cent tariffs against $155 billion of American products.
“Starting with $30 billion worth of goods immediately, and the remaining $125 billion in 21 days’ time.”
Trump reacted on Truth Social, warning retaliatory tariffs would lead to an immediate reciprocal tariff increase.
In addition to tariffs, Trudeau said Canada would challenge the U.S. actions through the World Trade Organization and the Canada-U.S.-Mexico Free Trade Agreement (CUSMA). He also questioned the justification for the tariffs, which had initially been framed as a U.S. response to concerns over fentanyl trafficking and border security. Trudeau pointed out that Canadian efforts on border security had been well received by U.S. officials, claiming Trump had lost the legal grounds for starting what he described as an “unjustified” trade war.
“The one thing he has said repeatedly, is that what he wants is to see a total collapse of the Canadian economy because that will make it easier to annex us,” Trudeau said. “But he is rapidly going to find out, as American families are going to find out, that that’s going to hurt people on both sides of the border.”
In a separate post on Truth Social, Trump said that companies moving to the U.S. would not face tariffs, further fueling tensions.
Trudeau also criticized the U.S. stance on Russia, accusing the U.S. of appeasing Russian President Vladimir Putin while engaging in a trade war with Canada, a close ally. “So today, the United States launched a trade war against Canada, their closest partner and ally, the closest friend,” he remarked.
The Prime Minister assured Canadians that the government would support them through initiatives such as enhancing employment insurance, though he did not announce specific measures to protect Canadian businesses from potential takeovers.
Conservative Leader Pierre Poilievre argued that the Canadian government should have been proactive in addressing fentanyl trafficking and securing the border without external pressure from Trump. He also suggested that Canada use counter-tariffs as a way to reduce taxes, specifically calling for the removal of the Liberal carbon tax and other tax cuts.
Trump also announced plans to implement 25 percent tariffs on all steel and aluminum imports into the U.S. starting March 12. These tariffs would be imposed in addition to any existing duties.
