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Canada Responds to Trump’s Tariffs with Retaliatory Measures on U.S. Goods

Canada has responded to President Trump’s tariffs with its own retaliatory measures, targeting key U.S. industries and Republican strongholds. Prime Minister Justin Trudeau has emphasized that these actions are necessary and proportional, while legal challenges under international trade agreements are also being considered. The escalating trade dispute threatens economic relations between the two countries and could have widespread implications for businesses and consumers on both sides.

“Canadians understand that we need to respond to this,” Prime Minister Justin Trudeau said Saturday night. | AFP via Getty Images

Trudeau Announces Tariffs on Key U.S. Goods

In response to President Donald Trump’s new tariffs on Canadian imports, Prime Minister Justin Trudeau has unveiled a series of retaliatory tariffs targeting U.S. products worth C$155 billion ($106 billion). The first round, valued at C$30 billion, will take effect on Tuesday.

Trudeau stated that Canada must respond in a way that is “appropriate, measured, but forceful” to counteract the economic impact of U.S. trade policies.

Targeted Products and Republican States

The Canadian tariffs are strategically aimed at states and industries with political ties to Trump and his allies. Among the affected products are:

  • Oranges and fruit from Florida, home to Trump’s Mar-a-Lago estate
  • Household appliances from South Carolina and Ohio, linked to Sen. Lindsey Graham and Vice President J.D. Vance
  • Motorcycles and coffee from Pennsylvania, a key swing state in Trump’s reelection

In total, 1,256 items have been included in the initial tariff list, covering agriculture, textiles, and household goods. However, energy and technology products have been excluded for now, with a second list expected to be released in the coming days.

Potential Legal Challenges

Canadian officials are also exploring legal action against the U.S. under the United States-Mexico-Canada Agreement (USMCA) or through the World Trade Organization (WTO). According to a senior official, Ottawa aims to leverage these trade agreements to challenge what it considers “unjustified and illegal” tariffs imposed by Washington.

Impact on U.S. Businesses and Consumers

The countermeasures are expected to hit American exporters hard, particularly in Republican-leaning states that rely on trade with Canada. Some key sectors facing significant tariffs include:

  • Cosmetics and body care – C$3.5 billion
  • Household appliances – C$3.4 billion
  • Pulp and paper products – C$3 billion
  • Tires – C$2 billion
  • Plastic products – C$1.8 billion
  • Furniture – C$1.6 billion
  • Coffee – C$714 million
  • Dairy products – C$555 million
  • Orange juice and fruits – C$512 million

Additionally, premiers in Ontario, British Columbia, and Newfoundland have announced they will remove American wine, beer, spirits, and seltzers from store shelves and restaurant menus in protest of the tariffs.

What Comes Next?

With both countries digging in on their respective trade policies, the escalating tariff war could strain Canada-U.S. economic relations. While Canadian officials hope the economic pressure will push Trump’s administration to reconsider its trade stance, the White House has signaled no immediate plans to back down.

Further retaliation could include export taxes on Canadian oil or direct measures against companies tied to Trump’s advisors, including Elon Musk’s businesses. If the situation remains unresolved, industries and consumers in both countries could face higher costs and economic uncertainty.

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