Canada announces retaliation to US tariff policies

Canada will hit back at US tariffs with 25 per cent levies of its own on select American goods, Prime Minister Justin Trudeau said Saturday. "Canada will be responding to the US trade action with 25 per cent tariffs against Can$155 billion ($106 billion) worth of American goods," he said in a dramatic tone as he warned of a fracture in longstanding Canada-US ties.

The first round of tariffs would target Can$30 billion worth of US goods on Tuesday followed by further tariffs on Can$125 billion worth of products in three weeks.

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

The tariffs will apply to "everyday items" such as American beer, wine and bourbon as well as fruits, vegetables, consumer appliances, lumber and plastics, he added -- "with much, much more."

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

Canadian exports to the United States will face a 25 per cent tariff starting Tuesday, although energy resources from Canada will have a lower 10 per cent levy.

Trudeau said the trade conflict will have "real consequences" for Canadians but also for Americans, including job losses, higher costs for food and gasoline, potential shutdowns of auto assembly plants, and impeded access to Canadian nickel, potash, uranium, steel and aluminum.

He offered a reminder that Canada has been at the US's side in its "darkest hours" 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.

Along with Canada, Mexican President Claudia Sheinbaum announced that her country would take countermeasures against the US tariffs. This countermeasure will be taken through other measures of its own, including the imposition of tariffs.

In addition, China's Ministry of Commerce has said that China is very dissatisfied with the US tariff measures. They firmly oppose it. This is a serious violation of World Trade Organization (WTO) rules. China will take similar countermeasures against the US.