UnusualWhales

Canada is hitting back with its own 25% tariffs on $155 billion worth of U.S. goods after U.S. President Donald Trump imposed sweeping trade restrictions—including 25% tariffs on all Canadian exports and an additional 10% levy on oil, natural gas, and electricity.

Trudeau’s Retaliatory Measures

Prime Minister Justin Trudeau announced that Canada’s countermeasures will begin with $30 billion in tariffs taking effect on Tuesday, followed by an additional $125 billion in duties phased in over the next 21 days.

Trudeau opted to proceed with retaliation despite Trump’s executive order including a provision to escalate U.S. tariff rates if Canada responded with its own trade penalties.

The U.S. tariffs are also set to take effect on Tuesday, triggering a high-stakes trade confrontation that threatens to destabilize North American economic growth and disrupt long-standing trade relationships with both Canada and Mexico.

U.S. Justification: Fentanyl & Border Security

The Trump administration claims the tariffs are designed to pressure China, Mexico, and Canada into curbing the production and distribution of fentanyl, as well as to push Canada and Mexico to tighten border security and reduce illegal immigration into the U.S.

However, a senior U.S. official declined to specify what measures would be required to roll back the tariffs, stating only that success would be measured by a decline in American fentanyl-related deaths.

Canada’s Border Security Pledge

In response to Trump’s border security demands, Trudeau previously announced a $1.3 billion investment in enhanced border enforcement. The plan includes helicopters, additional canine units, and advanced imaging technology aimed at addressing U.S. concerns—though it remains uncle