Canada Hits U.S. with $30B Tariffs: Trade War Escalates

Canada has fired the latest shot in a simmering trade conflict with the U.S., announcing 25% tariffs on American goods worth C$30 billion (US$22.4 billion) starting February 4. The move comes as direct retaliation for President Trump’s new tariffs on Canadian imports, sparking fears of a full-blown trade war.

The tariffs target everyday items like:

• Coffee & orange juice
• Peanut butter & wine
• Cosmetics & appliances

But this is just Phase 1. A second wave of tariffs on C$125 billion worth of U.S. imports—including cars, steel, pork, and aerospace products—is coming soon.

Prime Minister Justin Trudeau warned of even bigger moves ahead: “We’re considering everything from blocking U.S. bids for government contracts to restricting exports of critical minerals.”

The stakes are high: Canada’s Chamber of Commerce predicts a 2.6% GDP drop and $1,900/year cost per household if tariffs escalate. U.S. households could lose $1,300 annually.

With both nations set to implement tariffs simultaneously on February 4, tensions show no signs of cooling. Could this become North America’s biggest economic showdown since NAFTA?

Reference(s):

Canada imposes 25% tariffs on U.S. products worth C$30b

cgtn.com