Canada will retaliate with 25% tariffs on billions worth of U.S. goods as Trump’s tariff deadline passes

Prime Minister Justin Trudeau holds a press conference at Canada House in London on Sunday, March 2, 2025. THE CANADIAN PRESS/Sean Kilpatrick

Prime Minister Justin Trudeau says Canada is prepared for a trade war with its southern neighbour as U.S. President Donald Trump’s 25 per cent tariffs on Canadian goods took effect Tuesday at midnight.

“Canada will not let this unjustified decision go unanswered,” Trudeau said in a statement late Monday. “Should American tariffs come into effect tonight, Canada will, effective 12:01 a.m. EST tomorrow, respond with 25 per cent tariffs against $155 billion of American goods.”

Trudeau added that the “tariffs will remain in place until the U.S. trade action is withdrawn” and non-tariff measures in collaboration with the provinces and territories are on the table.

Canada’s retaliatory tariff plan includes two phases, announced by Trudeau last month, said to total $30 billion in U.S. goods in the immediate term. A further round of tariffs on a wider list of American products, valued at $125 billion, is expected to come into effect 21 days later, following a public comment period.

“We will be ready,” Foreign Affairs Minister Melanie Joly told reporters on Parliament Hill Monday prior to Trudeau’s statement, categorizing Trump’s tariffs as “an existential threat.”

Trump first threatened the punishing 25 per cent tariffs on Canadian goods in late November, with the stated aim of stopping the flow of illegal migrants and drugs crossing the border from Canada into the U.S.

After signing an executive order on Feb. 1 to implement the levies, Trudeau struck an 11th-hour deal to delay them for 30 days after recommitting his government’s $1.3-billion border plan – which includes deploying additional personnel, drones, surveillance equipment and helicopters — along with appointing a “fentanyl czar” and listing drug cartels as terrorist entities.

Despite those latest moves, Trump confirmed on Monday there will be no more reprieves for Canada, telling reporters in the White House there’s “no room left” for negotiation.

“They’re all set,” he said. “They go into effect tomorrow.”

But Joly said she believes Canada has made a strong case around the border.

“We know we have a good plan. We know that we’ve invested in it. We know that we’ve answered questions that the Trump administration has had regarding our efforts.”

In his statement, Trudeau also pointed to how “less than (one) per cent of the fentanyl intercepted at the U.S. border comes from Canada” and said the federal government “has worked relentlessly to address this scourge that affects Canadians and Americans alike.”

Trump has promised additional rounds of tariffs, including 25 per cent on steel and aluminum as of March 12, and reciprocal tariffs starting early next month.

National Defence Minister Bill Blair also told reporters on Parliament Hill on Monday that Canada will be prepared to respond to Trump’s first round of levies, saying discussions with the U.S. administration are still underway.

“I think it’s deeply regrettable and will have a very significant impact, not just on Canadians, but also on Americans,” Blair said of the tariffs.

Ford ready to cut off electricity to U.S.

Ontario Premier Doug Ford — who is also the chair of the Council of the Federation of Canada’s premiers — said his province is also ready to “respond strongly” to Trump’s tariffs.

Ford is threatening to cut off exports of Ontario nickel, take American alcohol off liquor store shelves and scrap provincial government contracts with U.S. companies, adding Trump has given Canadian governments “no choice.”

“I’m going after absolutely everything, and I don’t want to,” Ford said in an interview with NBC’s Meet the Press, adding Ontario supplies electricity to New York, Michigan, and Minnesota, and he’s prepared to cut it off.

“If he wants to destroy our economy and our families, I will shut down the electricity going down to the U.S.,” he said. “And I’m telling you, we will do it. It’s unfortunate.”

The Ontario premier, who won a third majority government last week, said Trump’s tariffs will force the markets of both countries “to go downhill faster than the American bobsled team,” adding it’s going to be an “absolute disaster.”

Ford said he’s been speaking with several American governors, senators and congresspeople, who all agree the tariffs are “the craziest thing that someone could ever do.”

With files from CTV News’ Rachel Aiello and Colton Praill