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March 10, 2025

Anna Murray 

On March 4, the United States imposed 25% tariffs on nearly all Canadian imports, along with 10% levies on Canadian energy exports, marking a significant escalation in trade tensions. In response, Canadian Prime Minister Justin Trudeau swiftly announced a 25% reciprocal tariff on C$155 billion ($107 billion) worth of American goods, emphasizing that Canada would not back down.

The dispute has triggered strong reactions across the country, with provinces considering additional countermeasures. Ontario Premier Doug Ford proposed a 25% export tax on electricity sent to Michigan, New York, and Minnesota, while also threatening to restrict the export of high-grade nickel. Additionally, Nova Scotia and Ontario have moved to ban American firms from bidding on government contracts. Several provinces, including Ontario, have started removing US-made liquor from store shelves.

This trade dispute comes at a time of political upheaval in Canada, where Trudeau's leadership had been under scrutiny before his recent resignation announcement. However, Trump’s aggressive trade measures have unexpectedly fostered unity in Canada, strengthening its resistance to US policies.