Canada’s initial retaliatory tariffs against the U.S. will stay despite President Trump delaying 25% tariffs on Canadian imports for a month. The tariffs, totaling $30 billion Canadian, target various goods like orange juice, peanut butter, and cosmetics. Ontario plans to increase electricity prices for Americans in response to Trump’s tariff plan. Premier Doug Ford emphasized that Ontario’s tariff will remain in place as long as the threat persists. British Columbia also plans to levy fees on commercial trucks traveling to Alaska until the tariffs are removed.
Prime Minister Trudeau anticipates a prolonged trade war with the U.S. post a constructive call with Trump. Trump’s new trade war imposition against major trading partners led to immediate retaliation and market turmoil. The U.S. will exclude USMCA compliant imports from Mexico and Canada from the 25% tariffs for a month. However, non-compliant goods may still face tariffs. Trump’s decision to grant a one-month exemption for automakers followed discussions with industry leaders.
Ottawa intends to impose $125 billion in tariffs on American products soon. Despite Trump’s assertion that the U.S. can do without Canada, a significant portion of U.S. oil and electricity imports come from Canada. Additionally, Canada is a crucial supplier of steel, aluminum, uranium, and critical minerals to the U.S. The bilateral trade relationship is vital, with billions of dollars’ worth of goods crossing the border daily, highlighting the interconnectedness of the two economies.
