Canada’s bracing for Trump’s tariffs. Here’s how it’s expected to respond

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This article was published 03/03/2025 (398 days ago), so information in it may no longer be current.

Tariffs on Canadian and Mexican goods imposed by the U.S. government are expected to take hold tomorrow, marking the start of a North American trade war.

President Donald Trump signed the order to impose the devastating levies on his northern and southern neighbours on Feb. 1, saying the measures would help stop “illegal migration” and the smuggling of opioids into U.S. territory.

In early February, Trump delayed the start date on the tariffs by 30 days after two phone calls between Prime Minister Justin Trudeau and Trump, and a Canadian promise to introduce new security measures at the border.

Since the levies were announced, governments across the country have responded with how they will fight back against the duties. Here’s a look at some proposed national and provincial responses to the tariffs.

National response

Prime Minister Justin Trudeau announced a 25 per cent retaliatory tariff on American goods when Trump signed the executive order.

The immediate counter-tariffs would impact $30 billion worth of goods starting the day the U.S. tariffs kick in, and sweeping tariffs across $125 billion worth of American products will take effect three weeks later.

Goods that would face duties include American beer, wine, bourbon, fruit, fruit juices and vegetables, as well as consumer products like household appliances, furniture and sporting goods.

Materials like lumber and plastic would also be included.

Ontario

Premier Doug Ford said the province’s liquor stores would remove American products from the shelves at the LCBO — the province’s alcohol wholesaler — and remove American products from its catalogue so that Ontario-based restaurants and sellers can’t order or restock them.

The products Ford said he would take aim at amounts to nearly $1 billion worth of booze sold at the LCBO each year.

Ford was one of several premiers to pull back on selling American liquor at provincial liquor stores, with Nova Scotia, Prince Edward Island, Newfoundland and Labrador, Quebec and Manitoba following suit.

Ford also said he would be cancelling a $100-million deal with Elon Musk’s Starlink, which would have provided high-speed internet to thousands of homes and businesses in remote and rural areas.

British Columbia

In addition to pulling American liquor from the shelves at the BC Liquor Distribution Branch, British Columbia Premier David Eby said he would direct the branch to immediately stop buying American liquor from red states.

Eby also asked Crown corporations to buy Canadian goods and services over their American counterparts.

Alberta

In contrast to her peers, Alberta Premier Danielle Smith has urged against any retaliatory action to the tariffs and instead peddled what she called a diplomatic approach.

In a message posted on social media platform X, Smith said her province would continue to work with the American administration to roll back the tariffs while “strenuously opposing” retaliatory economic measures.

Nova Scotia

Premier Tim Houston said Nova Scotia will limit access to provincial procurement for American businesses and would look for opportunities to cancel existing contracts with American companies.

His government also announced plans to double the tolls for commercial vehicles from the United States.

This report by The Canadian Press was first published March 3, 2025.