Canada Strikes Back as U.S. Tariffs Ignite Trade War
Toronto, Canada – Canadian Prime Minister Justin Trudeau delivered a fiery response on Tuesday, condemning U.S. President Donald Trump’s decision to impose tariffs on Canadian imports and vowing to retaliate with countermeasures. Trudeau called Trump’s trade actions “very dumb” and accused him of appeasing Russian President Vladimir Putin while targeting America’s closest allies.
The move marks a sharp escalation in trade tensions between the two North American neighbors. Trump’s administration imposed a 25% tariff on Mexican and Canadian imports, with Canadian energy receiving a slightly lower 10% tariff. In response, Canada has announced retaliatory tariffs on over $100 billion worth of American goods.
Trudeau Slams U.S. Tariffs, Calls Out Trump
During an impassioned news conference, Trudeau expressed frustration with the U.S. trade policy and questioned Trump’s motives.
“Today the United States launched a trade war against Canada, their closest partner and ally, their closest friend. At the same time, they are talking about working positively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Make that make sense,” Trudeau said.
Trudeau, in an unusual move, directly addressed Trump by his first name, saying, “Donald, even though you’re a very smart guy, this is a very dumb thing to do.”
Ontario Strikes Back With Energy, Mineral Export Taxes
The backlash from Canadian leadership has been swift. Ontario Premier Doug Ford announced a 25% export tax on electricity sold to the U.S., threatening to cut off supply entirely if the tariffs persist. Ontario currently powers 1.5 million homes in Michigan, New York, and Minnesota. Ford also pledged to halt the sale of nickel and rare minerals to the U.S., key resources for various American industries.
Additionally, Ontario has started removing American liquor brands from government-owned retail shelves. The Liquor Control Board of Ontario generates nearly $1 billion CAD ($687 million USD) in revenue from American alcoholic beverages each year. This move could significantly impact U.S. beverage producers who rely on Canadian sales.
Growing Nationalist Sentiment in Canada
Across the country, Canadians have expressed anger over what they see as a betrayal by their southern neighbor. Protests erupted outside the U.S. embassy in Vancouver, and reports indicate that Canadian sports fans have begun booing the American national anthem at NHL and NBA games.
“Canadians are hurt. Canadians are angry. We are going to choose to not go on vacation in Florida,” Trudeau said. “We are going to choose to try and buy Canadian products … and yeah, we’re probably going to keep booing the American anthem.”
Trump’s Response and Trade Talks
Trump took to his social media platform, Truth Social, to hit back at Canada’s retaliatory measures.
“Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!” Trump wrote.
Despite the harsh rhetoric, U.S. Commerce Secretary Howard Lutnick signaled a possible path toward negotiation. Speaking with Fox Business News, Lutnick stated that while the tariffs would not be paused, Trump might be open to meeting Canada and Mexico “in the middle.” Lutnick reportedly reached out to Ford after his press conference, urging him to de-escalate, but Ford responded by vowing to “go harder.”
What’s Next?
As tensions rise, both economies could feel the effects of the growing trade dispute. Financial markets have already reacted negatively, with investors wary of how prolonged economic uncertainty may impact industries reliant on cross-border trade.
Trudeau has reportedly told Canada’s provincial premiers that he hopes to speak directly with Trump to discuss the escalating situation. However, given the current state of relations, a swift resolution remains uncertain.
For now, Canada and the U.S. appear to be locked in a tit-for-tat economic battle, with no immediate end in sight.
