Canada announced plans to take legal action against the United States over the 25% tariffs imposed on most Canadian goods. A senior government official stated on Sunday that the tariffs are illegal and unjustified. The government will pursue this matter through international trade agreements, including those between Canada and the U.S.
The statement follows Prime Minister Justin Trudeau’s announcement on Saturday of Canada’s own retaliatory measures. These include 25% tariffs on U.S. products in response to President Donald Trump‘s decision to impose tariffs.
“We will obviously pursue the legal recourse that we believe we have,” the official told reporters in Ottawa, speaking anonymously.
On Tuesday, the U.S. will enforce a 25% tariff on most Canadian goods, except energy products like oil, gas, and electricity. For energy products, a 10% tariff will apply. The tariffs are set to take effect starting on Tuesday, with energy tariffs beginning on February 18.
In retaliation, Canada will impose tariffs on 1,256 U.S. products, covering 17% of all U.S. imports. This list includes items like orange juice, peanut butter, wine, beer, motorcycles, and cosmetics, amounting to up to C$30 billion. Major sectors affected include cosmetics and body care (C$3.5 billion), appliances and household items (C$3.4 billion), and pulp and paper products (C$3 billion).
In three weeks, Canada will publish a second list of U.S. goods targeted for tariffs. This list will include passenger vehicles, trucks (including electric vehicles), steel and aluminum, certain fruits and vegetables, and aerospace products. These products have a combined import value of C$125 billion.
The Canadian government called Trump’s tariffs a violation of both the free trade agreement between the two countries and the World Trade Organization (WTO) rules. “If other legal avenues are available to us, they will be considered,” the official said.
The trade dispute between the U.S. and Canada will impact the Canadian economy, though the official did not provide specific figures. To mitigate the effects, Canada will offer a “remission process” to allow businesses to apply for tariff relief or refunds if they meet certain conditions.
This tariff conflict began with Trump’s decision to impose broad tariffs on goods from Canada, Mexico, and China, citing the need to curb fentanyl and illegal immigration. The trade dispute has sparked fears of a global economic slowdown and rising inflation, as Canada and Mexico are among the top U.S. trading partners.
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