Canada Threatens Tariffs in Response to U.S. Trade Policy Shift

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Canadian Prime Minister Justin Trudeau announced on Friday that Canada would respond with "a purposeful, forceful but reasonable" retaliation if the United States proceeds with planned tariffs. President Donald Trump has set a deadline for a 25% tariff on imports from Canada and Mexico, citing the need for stronger action against illegal immigration and the illicit fentanyl trade.

In a news conference, Trudeau emphasized that Canada is prepared to counter the tariffs with measures targeting C$155 billion (approximately $115 billion) worth of U.S. imports. He cautioned that Trump's decision could result in difficult economic times for Canada, which relies heavily on trade with the U.S., exporting 75% of its goods and services to its southern neighbor. Trudeau reassured Canadians that their government stands by them and is committed to defending national interests.

According to Reuters, the potential trade war poses a significant risk to both economies, with experts warning it could reignite inflation and slow global growth.

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