Trump to Impose 25% Tariff on Most Canadian Goods from March 4

U.S. President Donald Trump has announced that a 25% tariff on most Canadian goods will come into effect on 4 March, ending a brief pause in trade restrictions.

Trump claims the move is necessary to combat the influx of fentanyl into the United States, despite evidence that existing border enforcement measures have significantly curbed drug smuggling from Canada.

In a social media post on Thursday, Trump stated that fentanyl imports remain a major threat and that the U.S. “cannot allow this scourge to continue to harm the USA.” He declared that the tariffs will remain in place until the alleged flow of drugs is either halted or significantly reduced. Additionally, the administration’s planned reciprocal tariffs on specific goods, set to be implemented in April, will proceed as scheduled.

Confusion Over Messaging

The tariff announcement follows a week of mixed signals from the White House. On Monday, Trump told reporters that the tariff pause negotiated with Canadian Prime Minister Justin Trudeau would end next week, with the 25% levy taking effect. However, White House officials later suggested the president was referring to other trade measures and that the universal tariff—25% on most Canadian goods and 10% on energy products—was still under negotiation.

By Thursday, Trump reaffirmed his decision, making it clear that the tariffs would be enforced without further delay and tying them explicitly to drug enforcement concerns.

Canadian Government Vows Retaliation

Prime Minister Trudeau has condemned the tariffs as “unjustified” and promised a swift response. Speaking at a press conference in Montreal, he warned that Canada will take “immediate and extremely strong” retaliatory measures. Trudeau reaffirmed that the primary objective of his government is to prevent the U.S. from imposing these tariffs, but if they go ahead, Canada will respond forcefully.

According to a report from “Європейська правда” citing CBC, Trudeau stated, “Canada will have an immediate and very strong response, as Canadians expect.”

Ottawa is expected to reinstate tariffs on approximately $150 billion worth of U.S. goods once Trump’s trade action takes effect. Trudeau stressed that the tariffs will not only harm Canadian businesses but will also have significant economic consequences for American companies, a message he says his government is communicating to U.S. policymakers.

Trump had initially planned for the tariffs to take effect on 4 February but postponed them by 30 days following discussions with Trudeau and Mexican President Claudia Sheinbaum. Despite this delay, both Canada and Mexico have stated that they will impose countermeasures if Trump proceeds with the tariffs.

Border Crackdown Shows Results

Despite Trump’s justification for the tariffs, official data suggests that Canadian authorities have made significant strides in combating fentanyl smuggling. Statistics from U.S. Customs and Border Protection (CBP) indicate that fentanyl seizures from Canada dropped by 97% in January compared to December 2024. Canadian officials credit this success to a $1.3-billion border security package implemented in recent months.

Canada’s Border Services Agency (CBSA) has been conducting targeted enforcement operations, including “Operation Blizzard,” which has led to significant fentanyl seizures and the arrests of smugglers attempting to move large quantities of the drug across the border. In one recent case, two U.S. citizens were detained at the Windsor-Detroit tunnel while carrying enough fentanyl to cause an estimated 10,000 fatalities.

Despite these efforts, Trump remains unconvinced. He has continued to accuse Canada, along with Mexico and China, of contributing to the “distribution of these dangerous and highly addictive poisons.”

Diplomatic Efforts Continue

In response to Trump’s escalating rhetoric, Canadian officials have been engaging with their U.S. counterparts to highlight the effectiveness of their drug enforcement efforts. Public Safety Minister David McGuinty, CBSA President Erin O’Gorman, and RCMP Commissioner Michael Duheme travelled to Washington this week to present Canada’s latest border security measures.

McGuinty stated that the Canadian delegation has received positive feedback from U.S. officials, with some acknowledging the “enormous progress” made in strengthening border security. However, Trump’s announcement suggests that his administration remains unmoved by these efforts.

Broader Trade Implications

The tariffs are expected to have significant economic repercussions for both countries. Canadian businesses that rely on exports to the U.S. will face increased costs, while American consumers may see higher prices for Canadian goods. The retaliatory measures promised by Canada will also impact American industries that depend on trade with their northern neighbour.

Despite the trade tensions, U.S. and Canadian law enforcement agencies have continued to work closely on joint operations targeting the illegal drug trade. Canadian officials argue that their crackdown on fentanyl, along with a sharp decline in illegal migration from Canada into the U.S., should address Washington’s concerns.

Conclusion

While the Trump administration remains firm in its stance, the Canadian government is preparing a strong response. With both sides unwilling to back down, the latest trade dispute threatens to escalate into a prolonged economic conflict. As the tariff deadline approaches, businesses and policymakers in both countries will be watching closely to see if further negotiations can defuse tensions or if a full-scale trade war is imminent.

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U.S. Set to Impose Tariffs on Canada and Mexico from February 1