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Trump launches North American trade war that puts trucking industry at risk

Canada strikes back at Trump tariffs

Feb. 3, 2025
North American trade partners are gearing up for a trade war as President Trump says the initial pain ‘will all be worth the price.’ Canada is the largest export market for 36 states, each sending over $1B in goods north of the border annually.

President Donald Trump is following through on campaign promises to use tariffs on Canada, Mexico, and China to quell an influx of illegal narcotics and undocumented immigrants. The announcement over the weekend that 25% tariffs would begin Tuesday on imports from North American allies signaled the start of what could be a prolonged trade war between two nations that fuel busy cross-border trucking operations.

“Will there be some pain? Yes, maybe (and maybe not),” Trump wrote on social media Sunday. “But we will make America great again, and it will all be worth the price that must be paid.”

That price includes 25% tariffs on virtually all imported Canadian goods and services except Canadian energy exports, which will be subject to a 10% tariff. Mexico imports will also be subject to 25% levies, while Chinese goods will be taxed 10%.

Trump said repeatedly during his campaign and after his election that if Canada successfully dealt with its leaky border, the tariffs would be shelved. Canada was also warned retaliatory tariffs would increase the tariff rates. But Canada’s outgoing prime minister is retaliating. 

Over the weekend, Justin Trudeau announced his government would slap 25% tariffs on $30 billion worth of American goods coming into Canada beginning on February 4.

"We didn't ask for this, but we will not back down in standing up, both for Canadians and for the incredible, successful relationship and partnership between Canada and the United States,” Trudeau said in response to a question about the tariffs.

Items targeted in the first round of Canadian countermeasures include American beer, wine and bourbon, fruits and fruit juices, along with vegetables, perfume, clothing, and shoes. The list also includes major consumer products like household appliances, furniture, sports equipment, materials like lumber and plastics, and much more.

Trudeau said Canada would apply tariffs to an additional $125 billion worth of American imports within 21 days. This interval allows for a public comment period before implementation. It would include products such as passenger vehicles, trucks and buses, steel and aluminum products, specific fruits and vegetables, aerospace products, beef, pork, dairy products, and more. Most of Canada’s targets include goods imported from states that backed Trump in the 2024 election, according to Politico.

“Canada and the U.S. are more than just trading partners. We are highly integrated economies—and this has greatly benefitted both of our countries for more than 150 years," said Dominic LeBlanc, Canada's finance minister. "We want to preserve this relationship, but in the face of the unjustified U.S. tariffs against Canadian goods, we are taking action to protect our economy, our workers, and our businesses. We will always stand for Canada.”

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