Canadian Prime Minister Justin Trudeau has confirmed that Canada will impose tariffs on the United States, following Donald Trump’s decision to reintroduce 25% tariffs on Canadian goods.

Speaking at a press conference, Trudeau directly addressed Trump, stating:
“Even though you’re a very smart guy, this is a very dumb thing to do.”

Trudeau also announced that Canada will challenge the tariffs legally, filing a dispute with the World Trade Organization (WTO), arguing that the US tariffs violate the free trade agreement between the two nations.

Canada’s Response

Trudeau confirmed that Canada would impose 25% tariffs on $30 billion (£23.6 billion) worth of US goods, with a further $125 billion (£98.4 billion) in tariffs to be implemented by March 25.

He reaffirmed Canada’s stance on defending its trade interests, stating:

“Canadians are reasonable, and we are polite, but we will not back down from a fight.”

Trump’s Retaliation Threat

In response, Donald Trump suggested that US tariffs on Canada could increase further.

Posting on Truth Social, he wrote:
“Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the US, our Reciprocal Tariff will immediately increase by a like amount!”

Global Trade Tensions Rise

Trump’s new tariff policies came into effect on Tuesday, impacting Mexico, Canada, and China:

• 25% tariffs on imports from Mexico and Canada
• Doubling tariffs on Chinese imports from 10% to 20%

A White House statement defended the decision, citing ongoing concerns over cartel activity and the influx of illegal drugs into the US.

Key products affected by the tariffs include:

• Fresh produce, cars, car parts, and electronics (phones and computers)
• Crude oil from Canada, which will face a 10% tariff instead of 25%

China Responds With New Tariffs

China has responded by imposing new tariffs on US agricultural products, including:

• 15% tariffs on chicken, wheat, corn, and cotton
• 10% tariffs on sorghum, soybeans, pork, beef, seafood, fruit, vegetables, and dairy

Additionally, Beijing has added 10 US firms to its “unreliable entity” list, banning them from China-related trade and investments.

Potential Economic Impact

With these tariffs covering over 40% of all US imports, experts warn that they could trigger inflationary pressure in the US by increasing prices on consumer goods.

The situation remains fluid, with global trade tensions escalating. Further developments are expected as diplomatic discussions continue.