Trump tariffs, Canadian counter tariffs now in effect as deadline passes

With no indication that U.S. President Donald Trump has reversed course, blanket tariffs have been imposed on Canadian goods — as has a first wave of counter tariffs on some U.S. imports. 

Trump said Monday that his long-threatened trade war is going ahead with 25 per cent levies on most Canadian goods and that they would take effect as of midnight Tuesday.

Prime Minister Justin Trudeau said later on Monday that a first tranche of retaliatory tariffs on U.S. goods would also be going into force at the same time.

"Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures," Trudeau said in a statement late Monday.

"While we urge the U.S. administration to reconsider their tariffs, Canada remains firm in standing up for our economy, our jobs, our workers, and for a fair deal."

Trump said Monday that his long-threatened trade war is going ahead and there's nothing Canada can do to stop it.

The announcement threatens to upend trade relations between two countries that, for decades, were close partners and friends. The tariffs, which will apply to everything Canada sends south, could lead to job losses, economic devastation, higher inflation and hurt feelings on both sides of the border.

Speaking to reporters at the White House Monday afternoon, Trump said the United States has been "a laughingstock for years and years" and he needs to take trade action against its continental neighbours.

Trudeau is scheduled to hold a news conference on Tuesday at 10:30 a.m. ET with several federal cabinet ministers.

The president said he wants to punish Canada for a supposedly lax approach to drugs and migrants, even though data shows a border crackdown is already producing results.

"Very importantly, tomorrow, tariffs, 25 per cent on Canada and 25 per cent on Mexico, and that will start. So, they're gonna have to have a tariff," Trump said.

Asked if there's anything Canada can do to try to hold off the tariffs, Trump said: "No room left for Mexico or Canada. They're all set, they go into effect tomorrow."

Trump said Canada has allowed fentanyl to flood into the U.S. despite his government's own data that shows that claim is grossly overstated. About 19.5 kilograms was seized at the northern border last year compared to 9,570 kilograms at the southwestern border.

"It comes in from Canada and it comes in from Mexico, and that's an important thing to say," he said.