Africa & World

Countries Retaliate Against Trump’s Tariff Hike with Countermeasures

By Business Day AfricaFebruary 4th, 2025
Canadian official. Image: courtesy.

Countries are pushing back against President Donald Trump’s sweeping tariff hikes, with Canada leading the response by imposing more than $100 billion in retaliatory levies on US goods.

Prime Minister Justin Trudeau announced the measures late Saturday, framing them as a reluctant but necessary reaction to Washington’s trade actions.

“We don’t want to be here,” Trudeau said in a televised address from Ottawa, underscoring the deep economic ties between the two nations. “We didn’t ask for this.”

His remarks came hours after Trump imposed 25 percent tariffs on all Canadian and Mexican goods, with a partial exemption for Canada’s energy and oil exports.

In response, Trudeau said Canada would immediately enforce its own “far-reaching” tariffs of 25 percent on 155 billion Canadian dollars ($106 billion) worth of American imports.

The first round of tariffs, worth 30 billion Canadian dollars, will take effect Tuesday when the US measures go into force, Trudeau said.

The remaining 125 billion Canadian dollars in tariffs will be introduced over the next three weeks, giving Canadian businesses time to adjust.

Ottawa on Sunday released a detailed list of targeted US products, including honey, tomatoes, whiskey, and peanut butter, as well as consumer goods such as garments, porcelain items like toilets and bathtubs, refrigerators, and dishwashers.

Mr Trudeau also warned that additional measures were under consideration, including taxing or restricting energy exports that the United States relies on.

Addressing Americans directly, he said the US tariffs would backfire, disrupting jobs and industries on both sides of the border.

“This is a choice that, yes, will harm Canadians, but beyond that, it will have real consequences for you, the American people,” he said.

“As I have consistently said, tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities.”

The escalation signals a sharp deterioration in trade relations, as other nations weigh their own countermeasures against Trump’s aggressive tariff policy.

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