From the Department of Finance Canada

Canada Announces $155B Tariff Package in Response to U.S. Tariffs

Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs, and Mélanie Joly, Minister of Foreign Affairs, announced that the Government of Canada is moving forward with 25 per cent tariffs on $155 billion worth of goods in response to the unjustified and unreasonable tariffs imposed by the United States (U.S.) on Canadian goods.

These countermeasures have one goal: to protect and defend Canada’s interests, consumers, workers, and businesses.

The first phase of our response will include tariffs on $30 billion in goods imported from the U.S., effective February 4, 2025, when the U.S tariffs are applied. The list includes products such as orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper. A detailed list of these goods will be made available shortly.

Minister LeBlanc also announced that the government intends to impose tariffs on an additional list of imported U.S. goods worth $125 billion. A full list of these goods will be made available for a 21-day public comment period prior to implementation, and will include products such as passenger vehicles and trucks, including electric vehicles, steel and aluminum products, certain fruits and vegetables, aerospace products, beef, pork, dairy, trucks and buses, recreational vehicles, and recreational boats.

In addition to this initial response, Ministers LeBlanc and Joly reiterated that all options remain on the table as the government considers additional measures, including non-tariff options, should the U.S. continue to apply unjustified tariffs on Canada.

Less than 1 per cent of the fentanyl and illegal crossings into the United States come from Canada. We will not stand idly by when our nation is being needlessly and unfairly targeted. The government will defend Canadian interests and jobs. We stand ready to support affected workers and businesses.

The U.S. administration’s decision to impose tariffs will have devastating consequences for the American economy and people. Tariffs will upend production at U.S. auto assembly plants and oil refineries, raise costs for American consumers—at gas pumps and grocery stores—and put American prosperity at risk.

The government is also taking steps to mitigate the impact of its tariff countermeasures on Canadian workers and businesses by establishing a remission process to consider requests for exceptional relief from the tariffs imposed as part of Canada’s immediate response, as well as any future tariff actions. More details about the framework and process will be announced in the coming days.

The government continues to work closely with provincial and territorial governments, as well as business, labour, and other leaders to advance a robust Team Canada response, and to advocate with U.S. decision-makers on behalf of all Canadians to safeguard and strengthen Canada’s economy.

“This first set of countermeasures is about protecting—and supporting—Canada’s interests, workers, and industries. These U.S. tariffs are plainly unjustified. They are detrimental to both American and Canadian families and businesses. Working with provincial, territorial and industry partners, our singular focus is to get them removed as quickly as possible. Until then, our response will be balanced and resolute.”

– The Honourable Dominic LeBlanc,
Minister of Finance and Intergovernmental Affairs

“Canada will not stand by as the U.S., our closest and most important trading partner, applies harmful and unjustified tariffs against us. With these countermeasures, we are defending Canada’s interests and are doing what is best for Canadians and our economy.”

– The Honourable Mélanie Joly,
Minister of Foreign Affairs

• Canada is the top customer for U.S. goods and services exports and a critical supplier of goods and services integral to the U.S. economy, with Canada buying more U.S. goods than China, Japan, France and the United Kingdom combined.
• Millions of jobs on both sides of the border depend on this relationship, and every day over US$2.5 billion worth of goods and services crosses the border.
• Canada is the largest export market for 36 states and is among the top three for 46 states, with 43 states exporting over US$1 billion to Canada every year.
• Of the U.S.’s top five trading partners, Canada is the only country with whom the U.S. has a trade surplus in manufacturing (US$33 billion in 2023).
• The tariffs announced today by the Government of Canada will not apply to U.S. goods that are in transit to Canada on the day on which these countermeasures come into force.
• As a first line of defence, Canada’s robust system of economic support programs is available to help businesses and workers directly impacted by U.S. tariffs. This includes financing and advisory supports for businesses through financial Crown corporations and supports for workers through the Employment Insurance program. As we redouble our efforts to improve Canada’s investment, productivity and competitiveness in collaboration with provinces, territories and the business community, the government will proactively monitor impacts across sectors and the economy, and will bring forward additional measures to support workers and businesses as needed.
• On December 17, 2024, the Government of Canada announced Canada’s Border Plan, which aims to bolster border security, strengthen our immigration system, and keep Canadians safe.
• The Plan is backed by an investment of $1.3 billion and built around five pillars: 1) Detecting and disrupting fentanyl trade; 2) Introducing significant new tools for law enforcement; 3) Enhancing operational coordination; 4) Increasing information sharing; and 5) Minimizing unnecessary border volumes.

A Border Patrol agent standing watch at the Montana-Canada border in the CBP Spokane Sector. The Spokane Sector covers the U.S.-Canada border along the northwestern section of Montana, part of Idaho, and the eastern part of Washington.    Photo from U.S. Customs and Border Protection

From The Center Square

By Bethany Blankley

Cites smuggling, national security threats

President Donald Trump on Saturday declared a national emergency at the U.S.-Canada border, citing an influx of human and drug smuggling coming from Canada presenting a national security threat to Americans.

He did so after a record number of illegal border crossers were reported entering the U.S. from Canada, the greatest number of known or suspected terrorists were apprehended coming from Canada, and northern border terrorist arrests soared under the Biden and Trudeau administrations, The Center Square first reported.

Unlike the 1,954-mile U.S.-Mexico border, there are no border walls and significantly less technological equipment and agents to patrol the U.S.-Canada border, the longest international border in the world, The Center Square reported.

With far fewer agents in the field, less technological surveillance and increased national security threats posed by Canadian policies, U.S. officials have warned about a lack of operational control at the U.S.-Canada border, The Center Square first reported.

Trump’s Feb. 1, 2025, executive order “Imposing Duties to Address the Flow of Illicit Drugs across our Northern Border” states that the “sustained influx of illicit opioids and other drugs has profound consequences on our nation, endangering lives and putting a severe strain on our healthcare system, public services, and communities.”

He declared a national emergency citing the International Emergency Economic Powers Act, National Emergencies Act, section 604 of the Trade Act of 1974, and section 301 of title 3, United States Code.

The order expands the national emergency he declared on his first day in office declaring an invasion at the southern border. The national emergency now includes the northern border “to cover the threat to the safety and security of Americans, including the public health crisis of deaths due to the use of fentanyl and other illicit drugs, and the failure of Canada to do more to arrest, seize, detain, or otherwise intercept [drug trafficking organizations], other drug and human traffickers, criminals at large, and drugs.”

“Gang members, smugglers, human traffickers, and illicit drugs of all kinds have poured across our borders and into our communities. Canada has played a central role in these challenges, including by failing to devote sufficient attention and resources or meaningfully coordinate with United States law enforcement partners to effectively stem the tide of illicit drugs,” the order states.

DTOs “are the world’s leading producers of fentanyl, methamphetamine, cocaine, and other illicit drugs” that “often collaborate with transnational cartels to smuggle illicit drugs into the United States, utilizing clandestine airstrips, maritime routes, and overland corridors.”

While much focus has been on the southern border, “There is also a growing presence of Mexican cartels operating fentanyl and nitazene synthesis labs in Canada,” the order states. Illicit drugs are being shipped into the U.S. from Canada “due to the existing administrative exemption from duty and taxes, also known as de minimis,” under U.S. Code, which has created a public health crisis in the U.S. prompting Trump to designate the cartels as foreign terrorist organizations.

The order points to a Canadian Financial Transactions and Reports Analysis Centre report on the laundering of proceeds of illicit synthetic opioids as domestic production of fentanyl increased primarily in British Columbia. This contributed to Canada’s growing footprint in international narcotics distribution.

Last year, the Canadian Parliament held hearings expressing alarm about increased terrorism threats due to Prime Minister Justin Trudeau visa policies and U.S. lawmakers called for additional security at the northern border for similar reasons.

“Immediate action is required to address threats from Canada,” the order states, “which will not happen unless the compliance and cooperation of Canada is assured.”

Trump also imposed a 25% tariff on Canadian goods and a 10% tariff on energy resources effective Feb. 4.

If the Canadian government retaliates, the order states that Trump may increase or expand the scope of the tariffs. If the Canadian government fails “to take adequate steps to alleviate the illegal migration and illicit drug crises through cooperative enforcement actions,” additional action will be taken.

The order directs several cabinet leaders to coordinate and communicate with him and Congress “on the situation at our northern border.” Once the Canadian government “has taken adequate steps to alleviate this public health crisis through cooperative enforcement actions,” the tariffs may be removed.