US imposes 25% tariff on Canadian goods starting February 4 - CBC

A senior Canadian official told Western media that the US 25% tariffs will take effect on Tuesday.

According to the official, Trump's plan to hit Canada's economy includes a 10% tariff on energy products.

The Canadian government representative added that these potentially devastating tariffs would come into force on Tuesday and remain in effect until Trump is convinced that Canada is doing enough to stem the flow of fentanyl into the US.

Experts warn that trade measures of this magnitude could cut billions of dollars from Canada's gross domestic product (GDP) and plunge the country into a painful recession that would require government stimulus to prop up the economy.

Canada may respond to the US with its own tariffs

Canada is now expected to respond to the US by imposing its tariffs.

CBC sources indicated that Canadian Prime Minister Justin Trudeau will likely state the matter soon.

What are the consequences of applying tariffs

According to the Canadian government, nearly $800 billion worth of goods crossed the Canada-US border in the first nine months of 2024 alone.

“Trump's tariffs could drive down the flow of those goods with major ramifications for businesses and workers on both sides of the 49th parallel given just how intertwined the two countries are after decades of liberalized trade,” CBC reported.

Even before officially assuming office, Donald Trump had signaled his intention to impose tariffs on goods from the EU, as well as from Canada and Mexico. According to his plan, starting February 1 the US would impose a 25% tariff on imports from both Canada and Mexico.

Yesterday, White House press secretary Karoline Leavitt announced that Trump would enforce a 25% tariff on Canadian and Mexican imports, along with a 10% tariff on Chinese goods with immediate effect.

Canadian Prime Minister Justin Trudeau stated that his country is prepared to respond immediately if Trump proceeds with the 25% tariff.