Canadian Prime Minister Justin Trudeau announced sweeping retaliatory tariffs on American goods this morning, triggering a new phase in the trade standoff between the two longtime allies. Speaking from Parliament Hill, Trudeau said Canada will impose a 25 per cent tariff on $155 billion worth of American exports, starting with $30 billion immediately and expanding to the remaining $125 billion in 21 days.
“We will not back down from a fight,” Trudeau said. “Not when our country and the well-being of everyone in it is at stake.”
He noted that the U.S. launched the trade war against “their closest partner and ally, their closest friend. At the same time, they’re talking about working positively with Russia, appeasing Vladimir Putin, a lying, murderous dictator. Make that make sense.”
The announcement comes after the United States enacted its own tariffs on Canadian products, claiming that Canada is not doing enough to combat the illegal flow of fentanyl into the U.S. Trudeau said that rationale is “totally false,” pointing to existing border measures and recent investments to curb smuggling activity.
For Canadian businesses, HR professionals and C-suite leaders, the immediate concern is potential disruption to supply chains, hiring plans and investment. Trudeau acknowledged the fallout, warning that even with government support, these tariffs could mean tough decisions for employers across the country.
“We will use every tool at our disposal so Canadian workers and businesses can weather this storm,” he said.
Retaliatory measures and legal challenges
Trudeau outlined Canada’s plan to keep the tariffs in place until the United States withdraws its own. He also confirmed that his government will file dispute resolution claims at the World Trade Organization and through the United States–Mexico–Canada Agreement (USMCA).
In the meantime, Canadian officials are exploring “several non-tariff measures,” in consultation with provinces and territories. While Trudeau did not specify what these measures may entail, he stressed they are designed to show there are “no winners in a trade war.”
The prime minister cautioned that the longer the tariffs remain, the higher the risk to workplaces on both sides of the border. “Your government has chosen to do this to you,” he said, addressing Americans directly. “Markets are down and inflation is set to rise dramatically all across your country.”
U.S. officials have maintained the tariffs are necessary for national security reasons, citing their concerns about illegal fentanyl entering from Canada. However, Trudeau refuted those claims, saying, “There is absolutely no justification or need whatsoever for these tariffs today.”
Border enforcement and fentanyl crackdown
Trudeau detailed Canada’s actions to address fentanyl trafficking. He cited a $1.3-billion border plan that includes advanced technology such as AI-driven imaging tools and aerial surveillance. He also noted Canada’s new “fentanyl czar,” Kevin Brosseau, who has decades of experience in law enforcement.
“Far less than one per cent of fentanyl flows and less than one per cent of illegal crossings into the United States comes from Canada,” Trudeau said. In addition, he referenced a 97 per cent drop in fentanyl seizures at the border from December to January, data he said was acknowledged by U.S. Customs and Border Protection.
Despite these efforts, the United States imposed tariffs anyway, which Trudeau said indicates that fentanyl “is not specifically” the root cause. “We stepped up,” he said, “because we believe in working together to protect our citizens.”
Impact on North American collaboration
Canada and the United States share one of the world’s largest trading relationships. Human resources and executive leaders in sectors spanning automotive, agriculture and technology have grown accustomed to seamless, integrated supply chains. Many employers fear that a prolonged trade war could raise costs for raw materials, disrupt manufacturing cycles and force layoffs or hiring freezes.
Trudeau appeared to share that concern, calling the tariffs “sabotage” to the American agenda “that was supposed to usher in a new golden age” for the U.S. economy. He reminded Canadians that thousands of U.S. firms rely on Canadian materials and consumers, arguing that current policy may put those American jobs in jeopardy.
“I have offered to speak to Donald [Trump] over the past number of days,” Trudeau said. “I expect to speak with him in the days to come. I’m always there to talk with him about the importance of working together.”
In a question-and-answer session, he was asked if he truly believes fentanyl is the core reason behind the tariffs. “The facts show very clearly that … we are doing everything that is necessary,” Trudeau said. “I think … there is nothing Canada or Mexico can do to avoid these tariffs, underlines very clearly … that these tariffs are not specifically about fentanyl.”
Standing firm amid shifting alliances
Trudeau also criticized U.S. outreach to Russia, which he described as “appeasing Vladimir Putin, a lying, murderous dictator.” He suggested the U.S. stance toward traditional allies such as Canada has grown more hostile, at a time when it appears to be moving closer to Moscow.
“We two friends fighting is exactly what our opponents around the world want to see,” Trudeau said, urging the U.S. government to reconsider its approach. He noted that Canada remains a “reliable partner” for many global allies, including Mexico, which is also subject to U.S. tariffs.
“We have also doubled, redoubled our efforts to work with Mexico,” he said. “Together, we will seek new ways of working together and to provide mutual support in the face of this threat.”
Canadian unity and resilience
From a domestic standpoint, Trudeau emphasized that Canada is united. He pointed to recent collaborations among businesses, unions, Indigenous communities, provincial governments and everyday Canadians.
“In the face of uncertainty and worry, Canadians have shown so much solidarity,” he said. “I saw you sharing lists of Canadian products … changing your travel plans to stay in Canada rather than going to the United States, and redoubling your efforts to support our small businesses.”
Trudeau encouraged Canadians to “choose Canada and defend Canada,” adding that federal and provincial leaders will work to remove internal trade barriers and find new markets globally. He said the government stands ready to protect Canadian industries from “predatory behavior” during this trade war, including foreign takeovers of weakened local companies.
“We will stand up for Canadians every single second of every single day,” Trudeau said. “Because this country is worth fighting for.”
Moving forward amid tensions
Despite the challenges, Trudeau maintained an optimistic tone, highlighting Canadians’ history of resilience. He reminded those watching that the country has weathered economic storms before and emerged stronger.
“Canada remains the best country in the world,” he said. “When it comes time to defending our country, we speak with a single voice and walk hand in hand.”
HR professionals and executives across industries will now watch closely for any de-escalation in U.S.-Canada trade tensions. Many are re-evaluating supply chains, pricing models and staffing to account for potential long-term tariffs. While the prime minister has promised additional assistance and has signalled a willingness to negotiate, the timeline for resolution remains unclear.
“Have you spoken to Mr. Trump recently?” a reporter asked during the press conference. Trudeau answered that although he has made himself available, there has been no conversation to date. “I hope to be able to speak to him in the coming days,” he said.
For now, both sides appear entrenched. Canada will hold fast to its retaliatory measures until Washington lifts its tariffs, and the U.S. administration has reiterated that it wants more progress on fentanyl enforcement.
No immediate relief measures, but help in the works
Trudeau was asked about Canadians who have already felt the impact of the tariffs, including those laid off or told to stay home because their employers face immediate revenue loss. He replied that the government’s priority had been trying to block tariffs before they took effect, and that Ottawa will now concentrate on bringing a swift end to the trade war.
“As I said, our entire focus has been on preventing these tariffs from coming in … and now our focus is going to be on making sure that they get lifted,” Trudeau said. “But over the past month, we have been working on measures that if these tariffs last longer than a few hours or a few days, we [would] be able to help Canadian citizens, Canadian workers, Canadian companies make it through this time.”
Trudeau acknowledged that any prolonged dispute could put more jobs and businesses at risk. “Let’s also be clear, this is going to be tough,” he said. “What our government needs to make sure we’re doing is try to make sure that nobody goes hungry and that everyone carries their share of this. And that’s a hard thing to do, but that’s where we’re leaning in.”
He added that the federal government would work alongside provinces and territories on economic responses if the trade war drags on. “We will be there for Canadians,” Trudeau said. “We will defend Canadian jobs.”
