Canada to hit US with 25% retaliatory tariffs, Trudeau says 'will stand up for our country'

Canadian Prime Minister Justin Trudeau, on Saturday (Feb 1), said that his country will hit back at the tariffs imposed by the United States with 25 per cent levies of its own on select American goods.

"Canada will be responding to the US trade action with 25 per cent tariffs against Can$155 billion ($106 billion) worth of American goods," Trudeau said as he warned of a fracture in longstanding Canada-US ties.

Ottawa will impose tariffs on US goods in two phases. The initial round, which will start on Tuesday (Feb 4), will target (Canadian) $30 billion worth of American products, followed by additional tariffs on Can$125 billion worth of goods three weeks later.

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The Canadian prime minister further said that he doesn't want this escalation but will stand up for his country.

"We're certainly not looking to escalate. But we will stand up for Canada, for Canadians, for Canadian jobs," Trudeau said.

LIVE: Canada’s response to U.S. tariffs | EN DIRECT : Réplique aux tarifs douaniers américains https://t.co/1R7HT03O9G

What will the tariffs apply to?

The tariffs will impact a wide range of common consumer goods imported from the US. This includes:

- Alcoholic beverages like beer, wine, and bourbon
- Fresh produce such as fruits and vegetables
- Household appliances
- Lumber
- Plastics

United States President Donald Trump, citing a threat from illegal immigration and drugs, had announced broad tariffs on Canada, Mexico and China.

Beginning Tuesday, Canadian exports to the US will be subject to a 25% tariff. However, a lower tariff rate of 10% will apply to energy resources from Canada.

US tariffs violate the Free Trade Agreement (FTA)

Trudeau said that the tariffs imposed by the United States, violate the Free Trade Agreement that was negotiated a few years back.

He said that the trade war will affect Canada but will also have "real consequences" for the American people. These include job losses, higher costs for food and gasoline, potential shutdowns of auto assembly plants, and impeded access to Canadian nickel, potash, uranium, steel and aluminium.

In a stark reminder, Trudeau said that his country has over the years stood by the United States during times of crisis, in its "darkest hours".

Right from the Iran hostage crisis and war in Afghanistan to deadly natural disasters such as Hurricane Katrina and the recent California wildfires.

"We're always there, standing with you," Trudeau said.

"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."

"Unfortunately, the actions taken today by the White House split us apart instead of bringing us together."

(With inputs from agencies)