Canadian Prime Minister Justin Trudeau responded to the U.S. decision, effective at midnight on March 3rd, to impose a 25% tariff on Canadian goods, calling the move "unreasonable" and announcing a 25% tariff on $155 billion worth of American goods.

Canada's first round of tariffs, affecting $30 billion in American goods, went into effect on March 4th, and 21 days later, a second round targeting $125 billion in American goods will be implemented. Trudeau stated: "Our tariffs will remain in place until the United States removes its trade measures. If the U.S. tariffs do not stop, we are actively discussing with provinces and territories to explore multiple non-tariff measures."

He also added: "Due to the additional tariffs imposed by the U.S., American consumers will spend more on food, gasoline, and automobiles, and there is also a risk of losing thousands of jobs. Tariffs will undermine what has been an extremely successful trading relationship, which goes against the trade agreement negotiated during President Trump's previous term."

U.S. President Donald Trump has repeatedly threatened to impose large-scale tariffs on Canada, China, and Mexico as a means to correct trade imbalances and as retaliation for alleged fentanyl smuggling. Last week, Trump also said he would "soon" announce a 25% tariff on the European Union, covering "automobiles and all related products."

Trudeau said: "Despite the fact that less than 1% of the fentanyl seized at the U.S. border comes from Canada, we have been working tirelessly to address this disaster affecting both American and Canadian people. We have implemented a $1.3 billion border plan, adding helicopters, increasing border personnel, enhancing coordination, and investing more resources to prevent fentanyl from entering. Through cooperation with the U.S., from December 2024 to January 2025, the amount of fentanyl intercepted by U.S. Customs and Border Protection from Canada decreased by 97%, to nearly zero, at 0.03 pounds."

The American Chemistry Council (ACC) supports the USMCA and has consistently advocated for the removal of tariffs and the easing of trade tensions. The council also noted that the tariffs imposed by the U.S. would limit the domestic chemical industry's access to critical materials and manufacturing inputs, which may not be available or too costly to produce in the U.S., thereby hindering the development of the U.S. chemical industry.

The Chemistry Industry Association of Canada (CIAC) expressed similar concerns, emphasizing that for a long time, the economies of Canada and the United States have benefited from a seamless trading relationship. CIAC President and CEO Bob Masterson stated: "Tariffs are taxes, and they burden businesses and consumers who buy commercial inputs and consumer goods. Retaliatory tariffs will exacerbate these costs, adding to the cost of living...