Payam Javan: President Donald Trump has vowed to impose reciprocal tariffs on Canada following its decision to retaliate against U.S. import duties with matching tariffs. On March 4, Trump took to Truth Social, stating, “When [Canadian Prime Minister Justin Trudeau] puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!” This escalation follows a U.S. executive order on February 1, which imposed 25 percent tariffs on Canadian and Mexican imports, alongside 10 percent duties on Canadian energy products, citing inadequate action on fentanyl trafficking. Trump’s administration is also reviewing global trade practices, with further tariff details expected on April 2.

In response to the U.S. measures, Canada announced retaliatory tariffs targeting $155 billion in U.S. imports. The first phase, effective immediately, imposes a 25 percent surtax on $30 billion worth of goods, including orange juice and motorcycles, with an additional $125 billion planned in 21 days if U.S. tariffs persist. Tensions are set to rise further, with potential U.S. steel and aluminum tariffs looming on March 12 and reciprocal tariffs tied to issues like Canada’s GST, Digital Services Tax, and supply management system. Commerce Secretary Howard Lutnick criticized Canada’s trade policies, arguing they disadvantage U.S. industries like car manufacturing, which Trump aims to bring back domestically.