OTTAWA: Canada will challenge the U.S. 25% tariffs on most Canadian goods through international legal bodies, calling them illegal and unjustified, a senior official said Sunday.
The announcement follows Prime Minister Justin Trudeau’s decision to impose retaliatory 25% tariffs on U.S. goods after President Donald Trump introduced the tariffs on Saturday. The U.S. measures, set to take effect Tuesday, exclude energy products like oil, gas, and electricity, which will face a 10% duty starting Feb. 18.
In response, Canada will impose tariffs on 1,256 U.S. products—17% of total imports—amounting to C$30 billion. Affected goods include orange juice, peanut butter, wine, beer, motorcycles, cosmetics, and household items. Canada will release an additional list in three weeks, covering passenger vehicles, trucks (including EVs), steel, aluminum, and aerospace products, totaling C$125 billion.
The Canadian government considers Trump’s move a violation of their trade agreement and WTO rules and is exploring all legal options. Officials acknowledged the tariffs would impact Canada’s economy but did not provide specifics.
To support affected businesses, Canada will offer a “remission process,” allowing companies to apply for tariff relief or refunds under certain conditions.
Trump’s broad tariffs on goods from Canada, Mexico, and China are aimed at curbing fentanyl imports and, in the case of Canada and Mexico, illegal immigration. The move has sparked a trade war that could slow global economic growth and fuel inflation. Mexico and Canada remain the U.S.’s top trading partners.
