Islamabad, Feb 3: Canadian Prime Minister Justin Trudeau has urged citizens to support local businesses as Canada imposes retaliatory tariffs on US goods in response to Washington’s latest trade restrictions. The move underscores escalating tensions between the two North American neighbors and raises concerns over potential economic fallout.
Canada Responds to US Tariffs
A day after the United States enforced a 25% tariff on Canadian exports, Ottawa swiftly countered with equivalent tariffs on hundreds of American products. The Canadian government also introduced a relief mechanism to assist affected businesses, aiming to mitigate financial strain and maintain economic stability.
“Now is the time to choose products made right here in Canada. Check the labels. Let’s do our part. Wherever we can, choose Canada,” Trudeau posted on X (formerly Twitter), reinforcing the importance of local consumer support. 
Read More:
Empowering Education: BARD Foundation’s Enduring Legacy at LUMS
US Justification and Mexico’s Retaliation
The tariffs stem from an executive order signed by US President Donald Trump, imposing a 25% duty on imports from Canada and Mexico and a 10% levy on Chinese goods. The White House claims these measures are necessary to address illegal immigration and drug trafficking concerns.
Mexico has also taken action, announcing countermeasures against US exports, fueling fears of an intensified trade war across North America.
Relief Measures for Canadian Businesses
To protect domestic industries, Ottawa has launched a “remission process” allowing businesses to apply for tariff exemptions or refunds. Officials state that relief will be granted when alternative sources for affected goods are unavailable domestically or outside the US. Further aid may be provided in exceptional cases where tariffs could severely impact Canada’s economy.
“We want to maintain strong trade ties, but we will not stand idly by as unjustified US tariffs target Canadian industries. Our priority is to safeguard our economy, jobs, and businesses,” Finance Minister Dominic LeBlanc emphasized.
Canada Exploring Legal Action
A senior Canadian official revealed that Ottawa considers the US tariffs a direct violation of the USMCA free trade agreement and is evaluating legal options. The government also warned that retaliatory tariffs would have economic consequences and hinted at additional measures to support affected sectors.
As trade tensions escalate, Canada remains firm in its commitment to protecting its economy while advocating for fair trade practices. The coming months will be crucial in determining the future of North American trade relations.
