It remains to be seen whether the Trump administration will impose tariffs on Canadian and Mexican goods Saturday.
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.
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.
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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.
Prime Minister Justin 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.”
–with files from Global’s Sean Boynton and Saba Aziz
© 2025 Global News, a division of Corus Entertainment Inc.
Canada braces for Trump’s threatened tariffs as Ottawa vows response
