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The Canadian tariffs will target consumer goods from the U.S., including alcohol, fruits, clothing, and shoes. They will also apply to major consumer products such as household appliances, furniture, and materials like lumber and plastics.

"And as part of our response, we are considering with the provinces and territories several non-tariff measures, including some relating to critical minerals, energy procurement, and other partnerships," Trudeau added.

Tariffs and the Fentanyl Crisis

Trump has imposed tariffs on Canadian imports as part of his strategy to address the fentanyl crisis. 

Trudeau, who recently announced his resignation as leader of Canada’s Liberal Party, stated that he had not spoken with Trump since the U.S. president's inauguration but remains open to trade negotiations.

"If President Trump wants to usher in a new golden age for the United States, the better path is to partner with Canada, not to punish us," Trudeau said. "Canada has critical minerals, reliable and affordable energy, stable democratic institutions, shared values, and the natural resources you need. Canada has the ingredients necessary to build a booming and secure partnership for the North American economy, and we stand at the ready to work together."

Mexico and China Respond with Retaliatory Measures

Late Saturday, in response to Trump’s tariffs, Mexican President Claudia Sheinbaum announced a 25% retaliatory tariff on U.S. goods, according to Reuters. 

Economists predict that China will also respond with its own set of retaliatory tariffs, potentially targeting raw materials critical for semiconductor production or making other strategic trade policy changes to pressure the U.S. economy.

The 25% tariff on Canadian and Mexican imports marks a significant shift in U.S. trade policy, with wide-ranging economic consequences. The automotive industry, in particular, faces substantial challenges, while consumers may see higher prices on vehicles and other goods.

Canada and Mexico’s swift retaliatory actions highlight the potential for an escalating trade conflict. As global trade relations continue to shift, the coming weeks will be critical in determining the full impact of these tariffs.