If President Trump’s tariffs against Canada take effect, Canadian Prime Minister Justin Trudeau said the U.S. would immediately face a raft of countermeasures on Tuesday.
Why it matters: Trump’s comments Monday that he would impose 25% tariffs on Canada and Mexico sent markets sliding amid fears it could start a trade war, see inflation soar and hugely impact all three nations’ economies — and Trudeau in a statement noted the measures would hurt the U.S.
- “Because of the tariffs imposed by the U.S., Americans will pay more for groceries, gas, and cars, and potentially lose thousands of jobs. Tariffs will disrupt an incredibly successful trading relationship,” Trudeau said.
What to expect: Trudeau said Canadian officials would move to impose 25% tariffs against “$155 billion of American goods” at 12:01am Tuesday, when he noted Trump’s “unjustified” tariffs are due to take effect on exports from Canada and Mexico.
- Canada would start with tariffs on “$30 billion worth of goods immediately, and tariffs on the remaining $125 billion on American products in 21 days’ time,” Trudeau said.
- “Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” Trudeau added.
- “While we urge the U.S. administration to reconsider their tariffs, Canada remains firm in standing up for our economy, our jobs, our workers, and for a fair deal.”
The big picture: Trump last month struck a deal on border security with Canadian and Mexican officials and paused for 30 days his threat to impose on the countries his planned tariffs, but the president made clear on Monday no progress had been made during negotiations.
- Representatives for the White House did not immediately respond to Axios’ request for comment.
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