Canada hits back at US with new tariffs, calls move an ‘Existential Threat’

Canada has fired back at the United States with its own set of import taxes after US President Donald Trump imposed steep tariffs on Canadian and Mexican goods.

Trump’s new policy places a 25% tariff on products from Canada and Mexico and doubles tariffs on goods from China. Additionally, a 10% tariff has been added to Canadian energy exports.

In response, Canada is hitting back with tariffs on US$107 billion worth of American products—with C$30 billion in tariffs taking effect immediately and the remaining C$125 billion rolling out in three weeks.

Tariffs Spark Fears of Job Losses and Economic Downturn

Canadian officials warn that these tariffs could severely impact jobs and industries. Foreign Minister Mélanie Joly called them an “existential threat” to Canada, while Immigration Minister Marc Miller cautioned that a million jobs might be at risk due to the deep trade ties between the two nations.

"We can't replace an economy responsible for 80% of our trade overnight," Miller said.

The auto industry is expected to suffer the most. Many car parts cross the US-Canada border multiple times during production, meaning they could be taxed repeatedly. Canadian auto workers are nervous, with one Ontario worker saying, “I just bought my first house. Now I might have to look for work elsewhere.”

Trudeau, Mexico Condemn US Move

Canadian Prime Minister Justin Trudeau slammed the tariffs, saying there was "no justification" for them. He pointed out that less than 1% of fentanyl caught at the US border originates from Canada, refuting Trump's claim that these tariffs are meant to fight the opioid crisis.

Mexico’s President Claudia Sheinbaum also criticized the move, calling it unjustified and promising her own “tariff and non-tariff measures” to counter it. Details of Mexico’s response will be announced on Sunday.

US-Canada Trade War: What Happens Next?

As tensions rise, Canadian provincial leaders are considering even tougher measures. Ontario’s Premier Doug Ford suggested cutting off electricity exports and halting shipments of high-grade nickel to the US. Canada currently exports enough power to supply six million American homes.

“If they want to try to annihilate Ontario, I will do anything—including cutting off their energy—with a smile on my face,” Ford told NBC.

Meanwhile, China is also hitting back, raising tariffs to 20% on US products, including key agricultural goods. Chinese officials warn they will fight this "trade war to the bitter end."

With America’s top trading partners retaliating, experts fear a deeper economic crisis, predicting higher prices for American consumers and rising recession risks. The Canadian Chamber of Commerce called the tariffs "reckless," warning they could push both countries toward "job losses and economic disaster."

As tensions escalate, businesses, workers, and consumers on both sides of the border brace for impact.