Reply policy on US tariffs
Canadian Prime Minister, Justin Trudeauannounced a reply policy in the form of a 25 percent tariff for imported goods from the United States worth 155 billion Canadian dollars (around Rp 1,744 trillion). This policy was taken in response to a similar step that was first applied by the US President Donald Trump.
“As many as 30 billion Canadian dollars will come into force on Tuesday, while the rest, 125 billion Canadian dollars, will be implemented in the next 21 days,” Trudeau said in a press conference on Saturday (1/2/2025), as reported by Reuters.
Trump tariff policy and its impact
Previously, Trump signed an executive order which set a 25 percent tariff for all imported goods from Canada and Mexico, which came into force on Tuesday (4/2/2025). However, energy products from Canada get an exception with a special rate of 10 percent. In addition, similar policies are also applied to imported goods from Chinawith a rate of 10 percent.
Trump announced this policy through uploads on platform X, saying that the step was based on his authority in the International Emergency Economy Strength Act.
“We must protect the American people, and as president, I have the duty to ensure the safety of everyone,” Trump said.
Issue of security and economic uncertainty
He asserted that this tariff policy is part of efforts to ward off various threats, including illegal immigration and drug trafficking, especially fentanil.
The implementation of tariffs on Canadian goods will begin on Tuesday (4/2/2025) at 00.01 time of the east coast of the United States. Until now, there is no certainty when this tariff policy will be revoked, leaving uncertainty for business people in both countries.