Canada isn’t backing down in the latest trade dispute with the US. Prime Minister Justin Trudeau has announced 25% tariffs on $155 billion worth of US goods in response to American tariffs on Canadian imports. The US claims these measures are for national security, but Canada sees them as unfair.
What’s Getting Taxed?
Starting February 4, 2025, Canada will impose tariffs on a wide range of American products, including:
Food & Drinks: Orange juice, peanut butter, wine, spirits, beer, and coffee
Household & Lifestyle Items: Appliances, clothes, shoes, motorcycles, and cosmetics
Industrial Goods: Steel, aluminum, paper products, and aerospace materials
Why Is Canada Doing This?
The Canadian government says these tariffs are about protecting Canadian jobs, businesses, and consumers. Finance Minister Dominic LeBlanc called the US trade measures “unfair and unreasonable”, making it clear that Canada won’t just sit back and accept them.
What Happens Next?
Trade experts warn that this could hurt both economies. A 25% tariff could shrink the US economy by $200 billion, according to the Peterson Institute for International Economics. American consumers may also see higher prices, and some industries could face job losses.
With tensions rising, it’s unclear how this trade battle will end. But one thing is certain—Canada is standing its ground.
Author: Hassan Ahmad
