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Today: March 30, 2025
Today: March 30, 2025

How Canada is retaliating against US tariffs

Containers and cranes at the Port of Vancouver
March 04, 2025
Promit Mukherjee - Reuters

By Promit Mukherjee

OTTAWA (Reuters) -Canada plans additional retaliation for U.S. President Donald Trump's auto tariffs and reciprocal tariffs on U.S. trading partners scheduled for early April.

Canadian Prime Minister Mark Carney said on Thursday he had not yet determined what actions Canada might take, however.

Trump already imposed 25% tariffs on goods that did not comply with the U.S.-Mexico-Canada free trade agreement on March 6, but delayed a broader 25% tariff on most Canadian goods for 30 days. He then imposed tariffs on steel and aluminum imports on March 12.

Below are retaliatory measures Canada has already taken.

FIRST TRANCHE

Former Prime Minister Justin Trudeau imposed 25% tariffs on C$30 billion ($20.92 billion) in goods imported from the U.S. on March 6 in response to Trump's initial duties. 

The C$30 billion was part of an overall retaliation plan to target C$155 billion worth of goods imports from the U.S., though the remaining C$125 billion was delayed when Trump put off broader tariffs. Prime Minister Mark Carney, who replaced Trudeau on March 9, has said the list of goods subject to tariffs on April 2 remains in place depending on what the U.S. announces.

The first tranche of retaliation includes a list of 1,256 products such as orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper.

In terms of value of imports associated with some of the major products, cosmetics and body care are worth C$3.5 billion, appliances and other household items are worth C$3.4 billion, pulp and paper products are worth C$3 billion and plastic products are worth C$1.8 billion.

STEEL AND ALUMINUM

Effective March 13, 2025, Canada imposed 25% tariffs on an additional C$29.8 billion worth of products imported from the U.S. They are expected to remain in place until the U.S. eliminates its steel and aluminum tariffs on Canada.

The tariffs imposed in retaliation to steel and aluminum comprise a wide variety of items such as candles, glues, umbrellas, kitchenware, gold, platinum, jewellery and more.

ADDITIONAL TARIFFS

The Canadian government said that it will be consulting with the public and stakeholders for a broad second tranche of retaliatory tariffs. The government does not plan to announce new tariffs until April 2 when reciprocal tariffs are announced by Trump. These could include a wide range of products imported from the U.S. such as passenger vehicles and trucks, electric vehicles, fruits and vegetables, aerospace products, beef, pork and dairy. 

NON-TARIFF MEASURES

Trudeau had said Canada is also considering non-tariff retaliatory measures potentially relating to critical minerals, energy procurement and other partnerships. 

Asked on March 25 if non-tariff measures such as export controls or export taxes are on the table, Carney said they are options.

Several Canadian provinces have taken U.S. liquor off store shelves and Ontario Premier Doug Ford said all U.S.-based companies will be banned from taking part in government procurement. Ontario scrapped its C$100 million contract with Elon Musk's Starlink.

Canada has frozen all rebate payments for Tesla and banned the electric-vehicle maker from future EV rebate programs. Toronto stopped providing financial incentives for Tesla vehicles purchased as taxis or ride shares because of trade tensions with the U.S. earlier this month.

($1 = 1.4340 Canadian dollars)

(Reporting by Promit Mukherjee; Editing by Caroline Stauffer, Shri Navaratnam, Nia Williams and Marguerita Choy)

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