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| Flags of Canada and the United States | Photo: Reuters |
Canada is set to take legal action against the United States over the recent tariff imposition on most Canadian goods. A senior Canadian government official confirmed on Sunday that the legal steps would be taken under relevant international authorities, calling the U.S. tariffs "illegal and unfair."
The announcement comes after Canadian Prime Minister Justin Trudeau retaliated by imposing a 25% tariff on American goods. Speaking to reporters in Ottawa on condition of anonymity, the official stated that Canada considers the U.S. decision a violation of their trade commitments under both free trade agreements and the World Trade Organization (WTO).
U.S. President Donald Trump announced a 25% import tariff on all Canadian goods, excluding oil, gas, and electricity. Additionally, a 10% tariff would be imposed on energy imports from Canada. The 25% tariff will take effect on Tuesday, while the energy sector tariffs will be implemented on February 18.
In response, Canada has imposed tariffs on 1,256 U.S. products, covering 17% of all American imports. These tariffs, effective Tuesday, apply to goods such as orange juice, peanut butter, wine, beer, motorcycles, and cosmetics. Canada expects to generate an additional $30 billion in revenue from these tariffs.
The Canadian government has also stated that within three weeks, a second list of targeted goods will be released, including passenger vehicles, trucks, electric vehicles, steel and aluminum products, select fruits and vegetables, and aerospace-related items.
The Canadian official emphasized that if other legal avenues are available, they will also be considered. However, he acknowledged that both the U.S. tariffs and Canada's retaliatory measures will impact the Canadian economy but declined to specify the extent of the effects.
To assist Canadian businesses, the government has introduced a program that will allow companies to apply for exemptions or refunds under specific conditions.
Trump has justified the tariffs by citing concerns over drug trafficking, stating that Canada, Mexico, and China must take stronger action to prevent fentanyl from entering the U.S. He also linked the tariffs to border security, urging Canada and Mexico to help curb illegal immigration.
The escalating trade conflict has raised concerns among economists, who warn that it could slow global economic growth and contribute to renewed inflationary pressures.