Canada Announces Retaliatory Tariffs on U.S. Goods

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Feb. 2, 2025
By: Ashley J. Bodden

On February 1, 2025, Canada made it known that were not going to stand idly by while President Trump imposed 25 percent tariffs on Canadian goods. In response, Canada announced its own 25 percent tariffs on $155 billion worth of imported U.S. products. The countermeasures will be implemented in two phases, with the first phase becoming effective February 4, 2025 (the same effective date as Trump’s tariffs on Canadian imports). The second phase will go into effect in 21 days.

In the first phase, Canada will impose 25 percent tariffs on $30 billion in goods from the U.S. Canada has stated that these countermeasures will remain in place until the U.S. eliminates its tariffs against Canada. The list of products covered in the tariffs include food, agriculture products, cosmetic products, tires, clothing, footwear and accessories, wood and paper products, household appliances, glassware and flatware, light fixtures, jewelry, hand tools and knives, water heaters, motorcycles, drones, firearms and other weapons.

Canadian Minister of Finance LeBlanc stated that the second phase will impose tariffs on an additional $125 billion worth of U.S. goods. The full list 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.

Please note that the tariffs announced by the Government of Canada will not apply to U.S. goods that are in transit to Canada on or before February 4, 2025.

British Columbia Premier David Eby expressed his concerns for B.C. workers and business and announced immediate countermeasures in response to Trump’s tariff. Eby has directed the B.C. Liquor Distribution Branch to immediately stop purchasing American liquor from Republican-led "red states" and remove the top-selling brands from public liquor store shelves. Canadian Provinces Quebec, Ontario, Manitoba, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island have also promised countermeasures against Trump’s tariff and will be pulling American liquors from their shelves.

President Trump’s Executive Order imposing tariffs on Canadian goods contains a specific provision allowing President Trump to increase or expand the tariffs on Canadian goods to retaliate for any retaliation.

Both China and Mexico have vowed to strong countermeasures against the U.S. in the coming days.

If you have questions regarding the impact of these measures on your supply chain, please contact any attorney at Barnes Richardson and Colburn.