Canada retaliates against Trump’s tariffs with 25 per cent tariffs on billions of U.S. goods: Justin Trudeau

CTV News Channel brings you ongoing coverage as Canada braces for potential U.S. tariffs

Prime Minister Justin Trudeau announced Ottawa’s retaliation against the U.S. after President Donald Trump’s administration imposed sweeping import tariffs on Canada on Saturday.

Follow along for live updates:

9:11 p.m. EST: Justin Trudeau responds to Trump tariffs on Canada

In retaliation for U.S. President Donald Trump’s tariffs, Canada is responding with 25 per cent tariffs on $155 billion worth of American goods.

Prime Minister Justin Trudeau is announcing the federal government’s phased countermeasures in an address to Canadians from Parliament Hill. In his comments, Trudeau noted the “real” consequences for Americans after Trump’s actions.

The major announcement comes on the heels of weeks of anticipation and diplomatic efforts to avoid this moment, and after Trudeau meet with his cabinet and premiers on Saturday to discuss the national and historic response.

8:40 p.m. EST: Made in Canada signs

Canadian-Armenian singer-songwriter Raffi Cavoukian, a popular children’s singer, shared a post on X showing a Made in Canada sign at a local grocer.

“How we roll against #tariff madness,” he said.

8:03 p.m. EST: U.S. anthem booed at Ottawa Senators game

During the playing of the Star-Spangled Banner, Ottawa Senators fans were heard booing the U.S. anthem before taking on the Minnesota Wild.

It comes hours after Trump announced tariffs on Canadian imports.

7:42 p.m. EST: B.C. Premier orders liquor stores to halt import from red states

British Columbia Premier David Eby called Trump’s tariffs a “complete betrayal of the historic bond between our countries.”

Addressing reporters, Eby said he too is concerned about fentanyl but “this isn’t the way” to address the issue.

He called what Trump is doing an “unprecedented attack.” And said he’s ordered B.C. liquor stores to immediately stop buying American liquor from red states, and has directed the government and its Crown corporations including health authorities to immediately stop buying American goods.

Eby said he fully supports the federal government rolling out a “comprehensive, targeted set of national tariffs against American products.

7:36 p.m. EST: Trudeau confirms Trump tariffs on social media

Prime Minister Justin Trudeau confirmed on social media Trump’s sweeping tariffs on Canadians imports.

“I’ve met with the Premiers and our Cabinet today, and I’ll be speaking with President Sheinbaum of Mexico shortly,” Trudeau posted on X.

“We did not want this, but Canada is prepared.”

He will address Canadians at 8:30 p.m. EST.

7:25 p.m. EST: Liberal leadership candidates weigh in

Liberal leadership hopefuls former Bank of Canada governor Mark Carney and former House leader Karina Gould have made statements in response to Trump’s tariffs.

Carney, in a press release, said the tariffs are a “clear violation of our trade agreements and require the most serious trade and economic responses in our history.”

“Canada will not bow down to a bully,” he said, adding that he supports dollar-for-dollar retaliatory tariffs.

Gould, in a statement on X, said Canada has been America’s greatest ally for generations, adding, “This is not how you treat your friends.”

She encouraged Canadians to buy products made in Canada, and should she be elected prime minister, she would co-ordinate with “provincial and territorial counterparts and business leaders to create a list of products that are made in Canada.”

6:50 p.m. EST: PM Justin Trudeau to speak at 8:30 p.m. EST

The Prime Minister’s Office has announced that Prime Minister Justin Trudeau will now be responding to U.S. tariffs on Canada, at 8:30 p.m. EST.

He will be joined by Foreign Affairs Minister Mélanie Joly, Finance and Intergovernmental Affairs Minister Dominic LeBlanc, and Public Safety Minister David McGuinty.Trudeau will take questions following the announcement.

6:48 p.m.: Alcohol stakeholders ‘deeply concerned’

“We are deeply concerned that U.S. tariffs on imported spirits from Canada and Mexico will significantly harm all three countries and lead to a cycle of retaliatory tariffs that negatively impacts our shared industry,” the Distilled Spirits Council of the U.S., the Chamber of the Tequila Industry, and Spirits Canada on Tariffs on Imports from Canada and Mexico said in a joint statement.

Maintaining reciprocal duty-free access for all distilled spirits is “crucial for supporting jobs” they went on to say. “Our industries have thrived due to the level playing field established across our borders.”

6:30 p.m. EST: Manitoba Premier Kinew weighs in

Manitoba Premier Wab Kinew says Trump “built a wall, but it’s a wall targeting us,” he said in response to the U.S. president’s tariffs.

Posting on X, Kinew stressed the importance for Canadians to stand together and unite.

“Manitoba fully supports the federal government’s response to these tariffs,” he adds.

5:55 p.m. EST: Singh says ‘economic attack’ will not break Canada

Federal NDP leader Jagmeet Singh responded to the new tariffs on social media Saturday evening, saying that the order “will hurt all of us - and Americans.”

“Our values and our solidarity will not crumble in the face of Donald Trump’s economic attack,” he wrote in a post on X.

“Now is a time for Canadians to stand strong and stand together … Canada is strong. Canadians are united.”

5:50 p.m. EST: Trump addresses tariffs on Truth Social

The U.S. president posted a statement to his Truth Social account confirming sweeping tariffs on Canada, Mexico and China.

“We need to protect Americans, and it’s my duty as President to ensure the safety for all,” Trump wrote.

“I made a promise on my Campaign to stop the flood of illegal aliens and drugs from pouring across our Borders, and Americans overwhelmingly voted in favor of it.”

5:46 p.m. EST: Alt. premier disappointed in Trump’s decision

Alberta Premier Danielle Smith took to X to share her disappointment with Trump’s tariff decision, saying it “will harm Canadians and Americans alike,” and strain the relationship between both countries.

Smith says “Alberta will do everything in its power... to reverse this mutually destructive policy,” but will continue its diplomatic efforts to “persuade the U.S. President.”

5:40 p.m. EST White House issues ‘fact sheet’ on tariffs

According to a White House “fact sheet,” Trump is imposing the tariffs to address a national “emergency situation,” and “public health crisis.”

“The extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency under the International Emergency Economic Powers Act (IEEPA),” reads the Trump administration’s rationale.

“President Trump is taking bold action to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.”

As sources had indicated to CTV News earlier Saturday, Trump intends to keep the tariffs in place “until the crisis is alleviated.”

The White House claims Trump is leveraging America’s economic position “as a tool to secure our borders,” and that when voters elected him, they gave him a mandate to take this action.

5:34 p.m. EST: Pierre Poilievre calls for retaliation

Conservative Party Leader Pierre Poilievre condemned Trump’s tariffs “on Canada’s already weak economy,” in a post on X.

“There is no justification whatsoever for this treatment,” he said in a lengthy statement that called for the Liberals to recall Parliament to pass a multi-step plan that would include retaliation with “dollar-for-dollar” tariffs.

5:00 p.m. EST: New details on cabinet meeting

CTV News' chief political correspondent Vassy Kapelos says that according to a senior government source, counter-tariffs ranging from $10 billion to $85 billion were discussed as a response during today’s cabinet meeting, though the amount keeps fluctuating.

One source in cabinet said they would not be surprised if Trump increases his tariffs if and when Canada counters.

4:15 p.m. EST: ‘Profoundly disturbing’: Canadian Chamber of Commerce reacts

The Canadian Chamber of Commerce says that now that Trump has made good on his threat, Canadian governments need to provide security to those who are “rightly scared by the consequences of President Trump’s self-defeating measures.”

“President Trump’s profoundly disturbing decision to impose tariffs will have immediate and direct consequences on Canadian and American livelihoods,” said the Chamber’s president Candace Laing in a statement. “Tariffs will drastically increase the cost of everything for everyone: every day these tariffs are in place hurts families, communities, and businesses.”

4:05 p.m. EST: Border mayor weighs in

Chatham-Kent, Ont., Mayor Darrin Canniff told CTV News Channel the tariffs are a significant worry not only for Chatham-Kent but also the country. The U.S. has declared economic war on us, he said, and it’s going to have a huge impact.

“We have to come together as Canadians. ... we need to come together, 40 million strong.”

4:00 p.m. EST: Trump tariffs ‘deeply disappointing’: CFIB

Canada’s largest non-profit organization, the Canadian Federation of Independent Business (CFIB), which represents more than 100,000 members, says Trump’s tariffs will hit small businesses on both sides of the border.

“Over half (51%) of Canada’s small business are involved in importing or exporting directly with the U.S.,” the organization said in a press release. “Should Canada respond with tariffs of our own, small firms – already operating on razor-thin margins – will have no choice but to raise prices.”

Should the tariffs remain for a prolonged period, the CFIB says, “governments should ensure any support programs do not repeat the mistakes of pandemic support programs like CERB.”

3:40 p.m. EST: Facts on Canada-U.S. trade relationship

CTV News’ national correspondent Rachel Aiello reports that Canadian officials have repeatedly sought to emphasize, both publicly and in direct engagement with U.S. decision-makers, that Trump’s tariffs will raise prices for Americans too, from the cost of groceries and gas, to more pricey potash for U.S. farmers.

To offer a snapshot of the scope of the cross-border trading relationship, Canada buys more U.S. goods than China, Japan, France and the United Kingdom combined, and the U.S. sells more goods to Canada than any other country.

On a daily basis, $3.6 billion in goods and services cross between Canada and the U.S., making for a $1.3 trillion annual trading relationship that employs millions on both sides of the border, according to the Canadian Chamber of Commerce.

Canadian Chamber of Commerce public policy chief Matthew Holmes, speaking to Aiello on Friday, noted a 25 per cent tariff could shrink Canada’s GDP by 2.6 per cent and cost Canadian households an average of $1,900 annually. South of the border, it would result in a 1.6 per cent GDP drop and an average $1,300 hit to American households.

“We will see jobs affected by this. We will see employers really, really struggling and it’s important in Canada to remember that 98 per cent of our employers are small and medium enterprise,” Holmes said.

Of note given Trump’s decision to tariff energy, and Trudeau not ruling out energy export countermeasures, Canada is the number one supplier of energy to the U.S., supplying more than 99 per cent of U.S. natural gas imports, 85 per cent of U.S. electricity imports, and 60 per cent of U.S. crude oil imports, in 2023.

2:30 p.m. EST: Trudeau to meet with premiers

Following the cabinet meeting between the prime minister and his ministers, Trudeau is expected to meet with the provincial and territorial premiers at 4 p.m. EST to discuss the country’s response to the U.S. placing tariffs on Canada.

2:28 p.m. EST: Unifor says ‘Canada must hit back hard and fast’

Canada’s largest union, Unifor, said Ottawa must retaliate swiftly to Trump’s sweeping tariffs.

“With the implementation of these tariffs, President Trump has declared a trade war with Canada and with Canadian workers,” Unifor national president Lana Payne said in a press release. “Trump’s decision to go to battle with America’s largest trading partner will hurt working people on both sides of the border and inflict real economic damage to both countries.”

Payne added Trump has “enraged and united an entire nation that is ready to fight to defend every last job in this country.”

1:38 p.m. EST: Tariffs on Canada to take effect on Tuesday

Canada will be hit with a 25 per cent tariff across the board with an exception on energy which will be 10 per cent, Mexico will be hit with a 25 per cent tariff across the board including energy, and China a 10 per cent tariff across the board, CTV News' chief political correspondent Vassy Kapelos says.

It would take effect on Tuesday and would be in place until the fentanyl overdose issue is sorted.

Minister of Intergovernmental Affairs and Minister of Finance Dominic LeBlanc and Prime Minister Justin Trudeau will announce a Canadian response at 6 p.m. EST tonight.

A senior government source tells CTV News that Ottawa is expecting something formal at 2 p.m. EST. Cabinet is set to meet at 3 p.m. EST.

12:55 p.m. EST: Ford calls Trump’s potential tariffs ‘reckless’

Just a few days after calling for an early election in Ontario, Progressive Conservative Leader Doug Ford called Trump’s potential tariffs on Canadian imports “reckless.”

“He thinks he can break Canada. He thinks he can buy Canada. He doesn’t know what we know, the Canadian spirit can never be broken and, friends, Canada is not for sale,” Ford said at a campaign event in Brampton, underscoring his “Team Canada” approach to tackling the potential tariffs.

Ford closed his press conference with a message to the U.S. president.

“To President Trump, I can only say this: this is not a smart move. It’s selfish. It not only hurts Canadians, it hurts your own people. It hurts you, and your administration. It makes America poor. It makes Americans poor.”

12:50 p.m. EST: Mexican president thinks tariffs unlikely

U.S. President Donald Trump has also threatened Mexico with 25-per-cent tariffs starting sometime today, but Mexican President Claudia Sheinbaum is confident her country will be spared.

“We don’t think it will happen,” she told reporters on Jan. 29.

Trump wants Mexico to crack down on its border with the U.S. to stop illegal immigration and drug trafficking, just as he’s demanded with Canada.

12:27 p.m. EST: Trump, again, posts on Truth Social

After arriving at the Trump International Golf Course, the U.S. president again posted to his social media account, but not on the potential tariffs.

“This morning I ordered precision Military air strikes on the Senior ISIS Attack Planner and other terrorists he recruited and led in Somalia,” the post reads.

“Our Military has targeted this ISIS Attack Planner for years, but Biden and his cronies wouldn’t act quickly enough to get the job done. I did! The message to ISIS and all others who would attack Americans is that “WE WILL FIND YOU, AND WE WILL KILL YOU!”

12:04 p.m. EST: Trump fires director of the Consumer Financial Protection Bureau

U.S. President Donald Trump has fired the director of the Consumer Financial Protection Bureau, Rohit Chopra, in the latest purge of a Biden administration holdover.

Chopra was one of the more important regulators from the previous Democratic administration who was still on the job since Trump took office on Jan. 20. Chopra’s tenure saw the removal of medical debt from credit reports and limits on overdrafts penalties, all based on the premise that the financial system could be fairer and more competitive in ways that helped consumers. But many in the financial industry viewed his actions as regulatory overreach.

11:32 a.m. EST: Trump motorcade arrives at Florida golf club

Trump’s motorcade was seen arriving at the Trump International Golf Course in West Palm Beach, Fla.

According to the itinerary, the U.S. president has no public events scheduled for today.

11:15 a.m. EST: ‘Historical’ moment for Canadians: Furey

Newfoundland & Labrador Premier Andrew Furey says “we’re going to have to wait and see” if Trump follows through on the tariff threats.

“One thing is certain,” he says. “We need to be ready. We also need to make sure that we’re strong and unified in the approach... This is a historical moment, and existential moment for Canadians, and it rightfully deserves the federal government to stand up and be there in support.”

10:57 a.m. EST: Americans are ‘very, very afraid’ of the tariffs: Ham

There’s still no word on when or what tariffs will be implemented yet and CTV News political analyst Eric Ham says this is how Trump’s administration operates.

“It’s been nothing but chaos and confusion since Donald Trump came into office. We know that there’s been a flurry of executive orders from this administration, many of which have been blocked by judges,” Ham says.

When asked what people in the U.S. are saying about the potential tariffs, he says everyone is “very, very afraid.”

“The cost of food is already up, and if Donald Trump goes through with these tariffs, we’re going to see an across-the-board increase,” he adds.

10:35 a.m. EST: ‘Buy Canadian’ can be tricky at the grocery store

If the federal government triggers retaliatory tariffs on U.S. imports, Canadians will look for home-grown goods. But that will pose a challenge – especially at the grocery store.

Due to Canada’s shorter growing season, about 80 per cent of our fruit and 60 per cent of our vegetables are imported from the U.S and Mexico, CTV National News senior correspondent Heather Wright reports.

“Right now, because it is the cold season we have to get a lot of stuff from the States, primarily from California,” Jake Burkhart, a manager at Lady York Foods, a grocery store in Toronto, tells CTV News.

And what about products with ties on both sides of the border?

“Kraft peanut butter is made in Montreal with peanuts from the United States by a brand owned by an American company,” said Sylvain Charlebois, a food policy professor at Dalhousie University. “So is that a Canadian product or an American product?”

10:32 a.m. EST: What does the U.S. import from Canada?

The Associated Press

10:20 a.m. EST: Impact on Canadian seafood industry

B.C. exports more than a billion dollars worth of seafood to the U.S. every year, and Canada doesn’t have “obvious alternative markets to the U.S.,” B.C. Seafood Alliance’s Christina Burridge tells CTV News.

Burridge adds that Canada will be in a difficult position should Trump’s tariffs follow through.

When asked whether Canada has looked at other markets, she says they’re always looking for new ones, but the country mainly sells down the “I5 corridor,” which is a highway that leads from Vancouver to San Diego since the transportation links “work really well.”

“It’s not easy to find alternatives because Eastern Canada would be a difficult market for us,” she said. “Transportation costs are higher, they have their own seafood ... yes, we are looking, but there are no easy solutions here.”

10:10 a.m. EST: Trump posts on social media

Trump is spending his Saturday morning sharing posts on his Truth Social page – but not specifically on the looming tariffs he could place on Canadian imports.

Just before 8 a.m. EST, Trump shared that several Americans who were detained by Venezuelan authorities during nationwide protests last summer have been released and have arrived on U.S. soil.

Minutes later, Trump wrote that both Ellie Cohanim and Phil Flynn were “GREAT” during their Saturday morning segments on Fox News’ “Fox & Friends.” Cohanim focused on Israel, while Flynn discussed the impact on tariffs with several countries, including Canada.

9:55 a.m. EST: How might Canada respond?

Prime Minister Justin Trudeau has said ‘everything is on the table’ for how Canada might respond to U.S. tariffs, but premiers are divided.

Alberta Premier Danielle Smith and Saskatchewan Premier Scott Moe want oil exports kept out of any retaliatory measures, while Ontario Premier Doug Ford has threatened to cut off his province’s energy supply to several states.

Conservative Leader Pierre Poilievre said Canada should focus on U.S. products and services Canadians don’t need.

“We’re both going to lose as Americans and Canadians if we get in a trade war,” he told CTV News Atlantic late last month. “We can buy elsewhere to maximize the impact on Americans and minimize the impact on Canadians.”

Liberal leadership candidate Chrystia Freeland proposed targeting all Tesla vehicles – putting pressure on Trump supporter Elon Musk -- and U.S. alcohol.

9:49 a.m. EST: Trickle-down effect to small communities

An alliance of mayors have joined to address the looming tariff threats. Cathy Miller, Pelee Township Mayor, tells CTV News that “the uncertainty alone is the entire problem.”

“Trade is the source of prosperity and security between our nations. It certainly affects our border communities right away,” Miller said.

Miller says the uncertainty of the tariffs is bad for Canadian and U.S. economies. But her biggest concern is how interdependent and interconnected the prosperity of her community’s economy is to our neighbours to the south.

“As you know, Windsor is the automotive capital of Canada and it is our anchor of our region ... when we talk about the trickle-down effect on a community like mine, it’s around people losing their discretionary income and the pressures that can be put on disposable income.”

9:26 a.m. EST: What might be the retaliatory tariffs?

Though it’s still unclear what American imports will be hit with retaliatory tariffs, Kentucky Bourbon and orange juice from Trump’s home state of Florida are said to be options.

Food policy professor at Dalhousie University Sylvain Charlebois says Canada “will likely apply tariffs on specific products that will not hurt our food basket.”

“Breakfast cereals, most of it is American. So I do see Ottawa slapping a tariff on those products because sometimes they are seen as less healthy and that could resonate with a lot of people,” he adds.

9:20 a.m. EST: Small businesses impacted

Dani Kagan, co-founder of Mave and Chez, started her ergonomic shoe company in 2020 during the pandemic. She tells CTV News that the tariffs are a challenge she knows she will overcome, but it’ll be “a tough one.”

“This is not the result that we wanted to have, but it is going to impact us. So, we need to make some decisions and get through this as a small business.”

9:00 a.m. EST: What is a tariff?

Tariffs - a tax on imported or exported goods - have become a concern in Canada following a series of threats spanning months from Trump.

Companies importing products into the U.S. will be required to pay a tax on those products.

Conversely, if Canada were to apply tariffs on goods imported into Canada, Canadian businesses that import from the U.S. would pay a tax on those imports, likely making products from the U.S. more expensive for Canadian consumers.

Read more here

Jan. 31, 7 p.m. EST: Canada has taken ‘lazy route’ for buying produce

Farmers across Canada have sold their produce to other countries, primarily the U.S. It’s also cheaper for Canadians to buy fruits and vegetables from both the U.S. and Mexico.

Sylvain Charlebois, a food distribution professor at Dalhousie University, says Canada has taken the “lazy route” of importing from our southern neighbours.

“That’s the cheapest way, [and the] easiest way, to do it,” he added. “The hardest way is to actually have a plan -- and Canada doesn’t have a plan.”

Jan. 31, 7 a.m. EST: Liberal ministers make last-ditch pitch to Trump

Foreign Affairs Minister Mélanie Joly, Public Safety Minister David McGuinty and Immigration Minister Marc Miller were in Washington, D.C., on Friday, making a final diplomatic push to convince Republican lawmakers and Trump’s team to sway the U.S. president.

Joly says she has been in communication with her U.S. counterpart, Secretary of State Marco Rubio, as Trump’s claim to put a 25 per cent tariff on imports on Feb. 1 draws closer.

Jan. 27, 12 p.m. EST: Trump says the U.S. subsidizes Canada. Does it really?

Canada and the U.S. have one of the world’s most integrated trading partnerships. The U.S. imports more Canadian goods than it exports north of the border. That difference is called a trade deficit.

Since taking office Jan. 20, Trump has said the U.S. subsidizes Canada, pointing to $45-billion trade deficit between the two countries, which he has incorrectly claimed is closer to $200 billion.

Jim Stanford, an economist and director of the Centre for Future Work, says Trump and his team know there’s a difference between a trade deficit and a subsidy.

“Mr. Trump quite literally makes these numbers up and they can change from one day to the next, $100 billion, $200 billion, $300 (billion). It’s like a game show,” Stanford said.