Canada Hits Back with $155 Billion in Counter Tariffs Against U.S. Trade Measures

Ottawa, ON – Canada is responding forcefully to what it calls “unwarranted and unreasonable” tariffs imposed by the United States, launching its own countermeasures on billions of dollars’ worth of American imports.

In an announcement today, Finance Minister Dominic LeBlanc and Foreign Affairs Minister Mélanie Joly revealed that Canada will implement 25 per cent tariffs on $155 billion in U.S. goods, beginning with an initial $30 billion in products effective immediately. If the U.S. tariffs remain in place, Canada intends to extend the countermeasures to the full $155 billion.

“This was not the outcome Canada hoped for – but we must respond in order to protect our economy and Canadian jobs,” LeBlanc stated.

Immediate Impact on Goods

Starting at 12:01 a.m. on March 4, the first phase of Canada’s response includes tariffs on a broad range of U.S. imports. The list of targeted goods includes orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and certain pulp and paper products.

If the U.S. tariffs persist, Canada is prepared to escalate its response with an additional $125 billion in countermeasures. A public consultation period of 21 days has been opened for feedback on the second-phase tariff list, which includes electric vehicles, fruits and vegetables, beef, pork, dairy, electronics, steel, aluminum, trucks, and buses.

The moment U.S. tariffs came into effect this morning, so did the Canadian response.

Canada will be implementing 25% tariffs against $155 billion of American products.

Starting with $30 billion worth of goods immediately, and the remaining $125 billion in 21 days’ time.

— Justin Trudeau (@JustinTrudeau) March 4, 2025

Support for Canadian Businesses

To mitigate the impact on Canadian businesses and workers, the government is launching a remission process, allowing affected companies to apply for exceptional relief from the tariffs.

“All options remain on the table as the government considers additional measures, including non-tariff options, should the U.S. continue to apply unjustified tariffs on Canada,” the Finance Department stated.

Broader Economic and Security Implications

Canadian officials warn that the U.S. tariffs will have devastating consequences, not just for Canada but also for American consumers and businesses. The measures are expected to drive up prices at grocery stores and gas stations in the U.S. while disrupting supply chains that have long supported economic growth in both nations.

The Canadian government also pushed back against U.S. claims related to border security, emphasizing that Canada has taken aggressive action against fentanyl trafficking. According to officials, Canada’s newly launched $1.3 billion border security plan— which includes new helicopters, additional personnel, and intelligence-sharing efforts—has led to a 97 per cent drop in fentanyl seizures at the U.S.-Canada border between December 2024 and January 2025.

Despite these efforts, the U.S. administration moved forward with tariffs that Canada argues violate the Canada-U.S.-Mexico Agreement (CUSMA), which was renegotiated under former President Donald Trump.

Call for Resolution

While Canada stands firm in its response, officials stress that their goal remains the removal of U.S. tariffs. “Canada is being needlessly and unfairly targeted by these tariffs – and the U.S.’s decision leaves us with no choice but to respond to protect Canadian interests, workers, and businesses,” LeBlanc said.

Joly echoed the sentiment, emphasizing the broader economic impact of the U.S. move. “Today, the United States has chosen to pursue a harmful course of action that threatens the prosperity of both our nations,” she said. “Canada stands firm in defending our economy, workers, and businesses against these unjustified tariffs.”

As trade tensions escalate, Canada is urging the U.S. administration to reconsider its approach while making it clear that it will not back down in protecting Canadian industries and jobs.