As of 12:01 a.m. this morning, Canada and the U.S. have entered a trade war after President Donald Trump launched 25 per cent tariffs on almost all Canadian goods.
Shortly after, Prime Minister Justin Trudeau and the Canadian federal government have countered with retaliatory 25 per cent tariffs on $30 billion worth of U.S. goods, expected to have noticeable impacts almost immediately.
A second round of tariffs worth $125 billion is under consideration, covering electric vehicles, aerospace products, and agricultural goods. The Canadian government is also exploring non-tariff measures to counteract U.S. actions.
Just in Ontario, LCBO stores have already started removing all alcohol from the U.S., a $100 million agreement with Elon Musk’s Starlink internet provider has been ripped up, and premier Doug Ford states that he intends to slap a 25 per cent export tax on electricity the province supplies to homes and businesses in New York, Michigan and Minnesota.
The tariffs will likely raise costs for consumers, disrupt supply chains, and threaten jobs in both countries.
U.S. auto plants and refineries may face production issues, while businesses reliant on Canadian imports will experience price increases, contributing to inflation.
As for what products are currently subject to tariffs, the government of Canada website has published a full comprehensive list on their website.
For the meantime, Canadians are encouraged to buy domestic products and support local businesses to offset economic disruptions. The government is also implementing a remission process to provide relief for businesses significantly affected by the tariffs.
The situation remains fluid, with Canada prepared to take further action to protect its economy and trade interests.