Trade tensions soar: Trump’s 25% tariff threat prompts strong Canadian response

World news: Canadian Prime Minister Justin Trudeau has vowed a swift and firm response if the United States follows through with its plan to impose 25% tariffs on Canadian goods. President Donald Trump has repeatedly threatened new trade restrictions, with the latest measures potentially taking effect as early as Saturday.

Taking to X (formerly Twitter), Trudeau stated, "No one — on either side of the border — wants to see American tariffs on Canadian goods. I met with our Canada-U.S. Council today. We’re working hard to prevent these tariffs, but if the United States moves ahead, Canada’s ready with a forceful and immediate response."

Canada-US trade tensions escalate

Trudeau reiterated his stance while speaking to reporters ahead of a meeting with his advisory council on U.S.-Canada relations. "If the president does choose to implement any tariffs against Canada, we're ready with a response – a purposeful, forceful but reasonable, immediate response," he said.

No one — on either side of the border — wants to see American tariffs on Canadian goods.

I met with our Canada-U.S. Council today. We’re working hard to prevent these tariffs, but if the United States moves ahead, Canada’s ready with a forceful and immediate response.

— Justin Trudeau (@JustinTrudeau) January 31, 2025

Trump reaffirmed his tariff threats on Thursday, noting that a decision on whether Canadian oil would be subject to the new duties was still pending. Trudeau, however, emphasized that these tariffs would harm both economies and weaken the collective security of the two nations.

Economic and security implications

Trudeau argued that Canada’s trade with the U.S. is vital for both countries' long-term economic prosperity and security. He highlighted Canada’s role in supplying essential commodities like steel, aluminum, critical minerals, and clean energy, alongside its "stable democratic institutions, shared values, and the best workers in the world.""If the tariffs are implemented against Canada, we will respond. We won't relent until tariffs are removed and, of course, everything is on the table," Trudeau stated.

Trump: No delays for tariffs on Canada, Mexico, and China

On Friday, Trump confirmed that the planned tariffs on Canadian and Mexican goods (25%) and Chinese imports (10%) would move forward without delay.While addressing the press at the Oval Office, Trump mentioned a possible 10% tariff on Canadian oil, instead of the full 25% on other Canadian goods. However, he also suggested that additional tariffs on oil and natural gas could be introduced in mid-February, a statement that caused oil prices to rise.

Trump acknowledged that these import taxes might lead to increased costs for American consumers and potential economic disruptions. Nonetheless, he remained firm on his decision, stating that no exemptions or delays would be granted at this stage. "No, no. Not right now, no," he responded when asked about possible reconsiderations.