Prime Minister Justin Trudeau announced on February 1 that Canada will impose a 25% tariff on $106.5 billion worth of U.S. goods in retaliation for new tariffs imposed by President Donald Trump.

Speaking at a press conference, Trudeau said the first round of tariffs—covering $20 billion worth of goods—will take effect on February 4, with the remaining tariffs phased in over the next 21 days.

"This Will Hurt the U.S. Too"

Trudeau warned that Trump's tariffs would harm both nations, calling the move a direct attack on Canada, a longtime ally of the U.S..

• He urged Canadians to buy local and vacation domestically instead of traveling to the U.S.
• His government is also considering non-tariff measures, including restrictions on critical minerals, energy purchases, and strategic partnerships.

Trump’s Tariff War Expands

The move comes after Trump signed three executive orders from his Mar-a-Lago resort on February 1, imposing:

• 25% tariffs on all imports from Canada and Mexico
• 10% tariffs on Canadian energy exports
• Tariffs on all Chinese goods

Trump justified the tariffs as a response to illegal immigration and drug trafficking. The new tariffs take effect on February 4.

Strong Reactions from Canada and Mexico

Canadian Business Leaders React

Canada’s business community immediately slammed Trump’s decision, warning it would raise costs for consumers on both sides of the border.

"President Trump’s reckless tariff decision will have immediate, severe consequences for American and Canadian livelihoods," the Canadian Chamber of Commerce said in a statement.

Ontario Premier: "We Have No Choice but to Retaliate"

Ontario Premier Doug Ford fully backed Trudeau’s strong response, calling it a necessary step.

"Canada has no choice but to respond forcefully. As Ontario’s Premier, I fully support the federal government’s firm, dollar-for-dollar countermeasure," Ford said.

"Canada has many resources the U.S. needs. We must maximize our advantages and leverage them to the fullest extent possible. The federal government must also pursue every legal avenue to challenge these unjust, unreasonable, and illegal tariffs."

Mexico Condemns "One of the Harshest Blows in History"

In Mexico, Ricardo Monreal, leader of the ruling party in Congress, called Trump’s move "completely unacceptable" and one of the most severe attacks on Mexico in its modern history.

"This is one of the most severe economic attacks Mexico has ever faced. It will hurt us—but it will also hurt them," Monreal said.

With tensions escalating rapidly, a full-blown North American trade war now appears imminent.

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