U.S. tariffs on Canada, Mexico and China take effect, triggering trade war

By Kelly Malone
The Canadian Press in the Financial Post
March 4, 2025
Category: Breaking News
Region: Canada, United States

WASHINGTON — Canadians are waking up to a new and uncertain reality after U.S. President Donald Trump’s deadline for economy-wide tariffs passed with no relent overnight, triggering a continental trade war. The president’s executive order hitting Canada and Mexico with 25 per cent across-the-board tariffs, with a lower 10 per cent levy on Canadian energy, took effect at 12:01 a.m. ET. …Prime Minister Justin Trudeau is set to hold a press conference in Ottawa Tuesday morning with Finance Minister Dominic LeBlanc, Foreign Affairs Minister Mélanie Joly and Public Safety Minister David McGuinty. Canada’s response is to start with tariffs on $30 billion worth of goods immediately and tariffs on the remaining $125 billion worth of American products 21 days later. The S&P 500 dropped two per cent in Monday afternoon trading. The Dow Jones Industrial Average dropped 1.5 per cent and the Nasdaq composite slumped 2.6 per cent. Ontario Premier Doug Ford warned Americans that Canada would have a strong response and suggested he could shut down the movement of critical minerals and energy into the United States. He said Trump needs to pull back for the sake of Americans and Canadians.

In related coverage:

Read More