Ottawa: Canada plans to take legal action against the United States over newly imposed 25% tariffs on most Canadian imports, calling them illegal and unjustified. A senior government official confirmed that Canada will challenge the tariffs through international trade bodies, arguing that they violate trade agreements with the US.
Prime Minister Justin Trudeau has responded with countermeasures, imposing 25% tariffs on 1,256 US products—amounting to 17% of US imports to Canada—starting Tuesday. The targeted goods, worth approximately C$30 billion, include cosmetics, appliances, paper products, peanut butter, and motorcycles. A second list, to be released in three weeks, will add more items such as passenger vehicles, steel, aluminum, and aerospace products, affecting a total import value of C$125 billion.
Trump’s tariffs exclude Canadian energy products, which will instead face a 10% duty beginning February 18. His administration claims the measures address issues like illegal immigration and the flow of fentanyl into the US. However, Canada views them as a violation of trade commitments under both its free trade agreements and the World Trade Organization (WTO).
In response, Canada will offer domestic businesses a mechanism to seek relief from retaliatory tariffs. Officials acknowledged that the tariffs and countermeasures will impact the Canadian economy but did not provide specific estimates.
The escalating trade conflict, which also involves Mexico and China, risks disrupting global economic growth and fueling inflation. Canada and Mexico remain the US’s largest trading partners.
