What’s coming in Canada’s response plan to Donald Trump’s tariffs

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This article was published 01/02/2025 (274 days ago), so information in it may no longer be current.

OTTAWA – Prime Minister Justin Trudeau has outlined Canada’s strategy to retaliate against the United States, as President Donald Trump moves to hit the country with 25 per cent tariffs on Tuesday.

Trudeau said Saturday night that Canada will hit the U.S. with reciprocal 25 per cent tariffs against some $155 billion worth of American goods. 

That response comes even as the Trump White House threatens such retaliation would invite escalation.

Here’s a look at some of the cards Ottawa has put on the table in the coming fight with the country’s most important trading partner.

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RETALIATORY TARIFFS

Trudeau’s response plan includes immediate counter-tariffs on $30 billion worth of goods starting on Feb. 4 — the same day the U.S. tariffs kick in.

But Canada will also ready a larger follow-up volley of sweeping tariffs on $125 billion worth of American products in three weeks. 

That’s designed to give time to Canadian companies to try to find alternatives, since it’s incredibly hard to pivot supply chains at a moment’s notice.

The items Trudeau previewed on Saturday include American beer, wine and bourbon, fruit, fruit juices and vegetables, along with retail items such as perfumes, clothing and shoes. 

Consumer products such as household appliances, furniture and sporting goods and materials such as lumber and plastics will also be included. 

The Trudeau government did not release more details Saturday when asked, but has previously floated steel and ceramics could make the shortlist. Ottawa is expected to release a more detailed list as early as Sunday.

Canada is the top export market for 36 U.S. states, according to the office of Canada’s chief economist.

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BUY CANADIAN 

Trudeau called on Canadians to buy domestic products where they can over American-origin products they’re used to purchasing, and swap any U.S. vacation plans with staycations or travel across Canada.

“Now is also the time to choose Canada,” Trudeau said. “There are many ways for you to do your part. That might mean checking the labels at the supermarket and picking Canadian-made products.” 

He suggested selecting Canadian rye over Kentucky bourbon and taking a pass on Florida orange juice — an item his government has repeatedly emphasized is politically important in a trade fight with the U.S. 

Trudeau pitched hiking and camping in provincial parks, visiting historical sites and other tourist destinations across Canada — though did not mention any by name.

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NON-TARIFF MEASURES

Trudeau said Canada is in talks with the provinces and territories over further action. 

That includes whether to make non-tariff-related moves over the export of critical minerals and energy — items high on the Americans’ list of priorities — and adjust government procurement decisions away from U.S. companies.

He did not offer any substantive detail about what exactly this might entail.

This report by The Canadian Press was first published Feb.1, 2025.