President Donald Trump triggered a trade war with Canada on Tuesday, slapping a 25% tariff on Canadian goods and a 10% levy on energy and critical minerals.
Trump’s national security concerns over “unchecked drug trafficking” said the move was important to American interests.
Prime Minister Justin Trudeau hit back with $30 billion in tariffs on US products, rising to $155 billion in three weeks.
Trudeau’s countermeasures took effect at 12:01 am EST, matching the timing of Trump’s new tariffs.
Early Tuesday morning, trucks stretched across the Ambassador Bridge, linking Windsor, Ontario, and Detroit, Michigan.
The Bridge is the busiest in North America and about $329 million in goods crosses over daily, from fresh produce to auto parts.
The next 24 hours promise confusion for drivers, as officials scramble to implement sudden changes.
Many fear these measures will raise consumer prices and harm industries that relied on free trade.
Trump claims Canada has allowed “vast amounts of fentanyl” into the US, calling it a security threat.
However, data suggest the drug arrives mostly from other routes, and Canada’s share is small.
Trudeau called the tariffs unjustified, insisting Canada’s drug controls are robust.
Trudeau plans to address Canadians on Tuesday with details on Ottawa’s strategy.
Also, Trudeau defended efforts to stop fentanyl from crossing into the US, saying the US data do not support Trump’s accusations.
On Monday evening, Trudeau issued a statement emphasizing Canada’s commitment to fair, open trade, and halting illegal drug trafficking.
He accused Washington of using the fentanyl issue as a pretext for protectionism, insisting Canada would not be bullied into a deal that weakens its sovereignty or economy.
In Washington, the President argued there was “no room left” for a new deal unless industries relocate production stateside.
Trump urged companies to follow Taiwan Semiconductor Manufacturing Company, which pledged major US investments.
Financial markets dropped on Monday, with the S&P 500 losing 1.8% and the Nasdaq falling 2.6%.
Observers warn of increasing volatility if trade disputes expand.
China also raised tariffs on key US farm products and tightened restrictions on American businesses.
Immigration Minister Marc Miller cautioned that one million Canadian jobs could be lost if the White House proceeds with its threats.
Foreign Affairs Minister Melanie Joly emphasized Canada’s efforts to combat illegal drugs.
Both ministers stressed Canada remains open to diplomacy but will not be pressured
Trump’s 25% tariff coincides with new tariffs on steel and aluminum, plus possible action against Canadian lumber.
Another wave of tariffs could begin on April 2, threatening deeper harm to bilateral ties that drive most of Canada’s trade.
Many Canadians now hope for a diplomatic breakthrough.
Without it, this dispute could inflict lasting economic pain and destabilize a relationship long viewed as essential to North American prosperity.
For now, neither side shows signs of backing down.