Summary
Canadian Prime Minister Justin Trudeau announced retaliatory tariffs after Donald Trump confirmed 25% tariffs on Canadian goods and 10% on energy, set to take effect at 12:01 a.m. Tuesday.
Trump justified the move by linking it to fentanyl smuggling concerns.
Trudeau called the tariffs “unjustified” and imposed 25% tariffs on $155 billion in U.S. goods, with $30 billion effective immediately and the rest in 21 days.
He warned of price hikes and job losses in the U.S., arguing the move violates Trump’s own trade agreement from his last term.
Trump’s tariffs make Canadian stuff more expensive for Americans, so they’ll tend to buy less Canadian stuff. Without retaliatory tariffs, Americans only buy American stuff, and Canadians continue to buy American stuff, so nobody is buying Canadian stuff. This hurts Canada because nobody is buying their stuff. With retaliatory tariffs, US stuff becomes more expensive in Canada, so it encourages Canadians to stop buying American and spend their money in Canada.