U.S. President Donald Trump signed an executive order imposing tariffs on Canadian and Mexican goods, he said in a statement on Saturday.
“I have implemented a 25% Tariff on Imports from Mexico and Canada (10% on Canadian Energy), and a 10% additional Tariff on China,” Trump said in a statement.
Sources in the Canadian government said Canada has been told the tariffs will go into effect on Tuesday.
Prime Minister Justin Trudeau is scheduled to address the nation at 8:30 pm Eastern. On Saturday, he chaired a cabinet meeting and hosted a virtual meeting with the provincial and territorial premiers. He is also scheduled to speak with Mexican President Claudia Sheinbaum.
Global News has learned Canada is expected to follow through with retaliatory tariffs. Details of what that will look like not yet clear.
Trump said he was imposing tariffs because of “the major threat” of fentanyl crossing into the United States.
“We need to protect Americans, and it is my duty as President to ensure the safety of all. I made a promise on my Campaign to stop the flood of illegal aliens and drugs from pouring across our Borders, and Americans overwhelmingly voted in favor of it,” Trump said in his statement
This comes after weeks of U.S. President Donald Trump repeatedly warning Mexico and Canada — two of the United States’ top trading partners — he will impose tariffs if the two countries do not end fentanyl trafficking and the flow of migrants across U.S. border.
He has also complained about deficits in trade after both countries took steps to boost security.
On Thursday, Trump said they “may or may not” include a tariff on Canadian oil and gas — Canada’s largest export to the United States — but whether tariffs will be the threatened 25 per cent ones on all exports or lower, more specific ones on certain sectors remains unclear.
Conservative leader Pierre Poilievre called on the federal government to recall Parliament to pass an aid package and hit the U.S. with retaliatory “dollar-for-dollar tariffs.”
“That means targeting U.S. products that we can make ourselves, buy elsewhere or do without. For example, we must retaliate against American steel and aluminium, as Canadians can make those vital products at home,” he said in a statement.
Alberta premier Danielle Smith said her province will “work collaboratively with our federal government and fellow provinces on a proportionate response to the imposed U.S. tariffs.”
She added, “Alberta will, however, continue to strenuously oppose any effort to ban exports to the U.S. or to tax our own people and businesses on goods leaving Canada for the United States. Such tactics would hurt Canadians far more than Americans.”
Ontario Premier Doug Ford said he was “extremely disappointed.”

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“Canada now has no choice but to hit back and hit back hard,” he said in a statement.”
“The coming days and weeks will be incredibly difficult. Trump’s tariffs will devastate our economy. They’ll put 450,000 jobs at risk across the province. Every sector and region will feel the impact.”
Nova Scotia Premier Tim Houston announced a range of retaliatory measures at the provincial level. He said Nova Scotia will limit access to provincial procurement for American businesses. As of Monday, the cost of tolls at the Cobequid Pass will double for commercial vehicles from the United States.
He also directed the Nova Scotia Liquor Corporation to remove all alcohol from the United States from their shelves as of Tuesday.
Other premiers also reacted sharply to the news.
“I join Canadians across the country condemning the unjustified tariffs the U.S. introduced on Canadian products,” said Newfoundland and Labrador Premier Anthony Furey, urging Canadians to buy local.
Manitoba Premier Wab Kinew said, “So Trump built a wall, but it’s a wall targeting us. Trump’s tariff tax is an attack on Canada and who we are.”
The Canadian Chamber of Commerce called news of the tariffs “profoundly disturbing.”
“Tariffs will drastically increase the cost of everything for everyone: every day these tariffs are in place hurts families, communities, and businesses,” Candace Laing, the chamber’s CEO and president, said in a statement.
Experts have warned that tariffs by the United States and counter-tariffs from Canada could put inflationary pressure on both economies. For certain goods like fresh fruits and vegetables, prices could start rising almost immediately, economists warned.
For a closer look at how prices on key everyday items could feel the effects of tariffs, read more here.
Former Bank of Canada governor and Liberal leadership candidate Mark Carney said in a statement that he supports “dollar-for-dollar retaliatory tariffs aimed where they will be felt the hardest in the United States but will have the least impact in Canada.”
“At the same time, we need a coordinated strategy to boost investment and to support our Canadian workers through what will be a difficult moment,” he said.
“Over the medium term, if we can no longer rely on American neighbours, we must diversify our trading relationships and build new sources of jobs and growth based on our immense resources, our talented people and their innovation and industry.”
Liberal leadership candidate Chrystia Freeland, the former federal finance minister, urged the government to impose $200 billion worth of retaliatory tariffs.
“I would include on that list 100 per cent tariffs on Teslas. I would include on that list tariffs on whiskey, on cheese, on dairy from the U.S. so that those Wisconsin dairy farmers who voted for Trump see themselves on the list, call up the White House and say, ‘Wait a minute, this is not what we voted for. We did not vote to lose our jobs and lose our markets.’”
All eyes are now on Ottawa, with the federal government likely to issue retaliatory tariffs on the U.S. if American tariffs go into effect.
Trudeau had warned the United States of a “forceful but reasonable immediate response.”
A day before that looming measure, Trudeau met with the Committee on Internal Trade, made up of premiers and federal officials under the Canadian Free Trade Agreement, in Toronto on Friday.
In his opening remarks before the meeting, Trudeau said Canada is in a “critical moment” after Trump doubled down on his threat Thursday, saying that a 25 per cent tariff on goods coming from Canada and Mexico would be imposed on Saturday.
“If the president does choose to implement any tariffs against Canada, we’re ready with a response — a purposeful, forceful but reasonable immediate response,” Trudeau said.
“It’s not what we want but if he moves forward, we will also act,” he added. “We’re ready for whatever scenario comes forward.”
Tu Nguyen, economist at RSM Canada, said U.S. tariffs and a response from Canada could likely see the Canadian economy contract by two per cent – a sharp contrast to the projected 1.8 per cent growth rate for 2025.
She said Canada could head into a recession, including job losses and inflation.
“They (tariffs and counter-tariffs) would also lift inflation from the current 2 per cent to a 2.7 per cent headline number, as some of the increased costs from tariffs are passed onto Canadian consumers,” she said.
Nguyen said Canada will likely see lower demand for “all goods and services like new cars, dining out and entertainment.”
The auto sector in the U.S., Canada and Mexico will be particularly hard hit, she said, with the industry losing out to competitors in Europe and Asia.
“The scenario in which economic damage is minimized is one in which a trade agreement is negotiated, putting an end to tariffs. The longer tariffs and retaliation continued, the more fractured and uncompetitive the three countries’ economies became — and the more economic pains consumers would feel from higher prices, fewer goods available and fewer jobs,” she said.
–with files from Global’s Jillian Piper, Mercedes Stephenson, Sean Boynton and Saba Aziz and from Reuters
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