US President Donald Trump has warned Canada that he will raise tariffs in response to Prime Minister Justin Trudeau’s decision to impose retaliatory duties on American goods.

Trudeau announced on Tuesday that Canada would implement 25% tariffs on $155 billion worth of US imports, following Trump’s decision to enforce similar tariffs on Mexican and Canadian products.

Trump responded on Truth Social, writing, “Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the US, our Reciprocal Tariff will immediately increase by a like amount!”

Rising Trade Tensions Between the US and Canada

Trump’s tariffs on North American imports took effect on Tuesday, prompting Trudeau to retaliate with duties on over $100 billion worth of American goods, set to be enforced in the next 21 days.

Trudeau dismissed Trump’s trade war as “dumb” and accused the US President of seeking “a total collapse of the Canadian economy because that’ll make it easier to annex us.” He firmly stated, “That’s never going to happen.”

The Canadian government announced plans to challenge the US tariffs at the World Trade Organization (WTO) and through the US-Mexico-Canada Agreement (USMCA).

“Canadians are reasonable and polite, but we will not back down from a fight,” said Trudeau, who is set to step down as Prime Minister after the governing Liberal Party elects a new leader on Sunday.

Canada, Mexico, and China Push Back Against US Tariffs

Ontario Premier Doug Ford also vowed to retaliate by imposing a 25% export tax on electricity sold to the US, threatening to cut off power exports entirely if the tariffs persist. Ontario currently supplies electricity to 1.5 million homes in Michigan, New York, and Minnesota.

Meanwhile, Mexican President Claudia Sheinbaum joined Canada and China in denouncing Trump’s tariff hikes. Sheinbaum called the move “unjustified and harmful” and announced that Mexico would soon reveal its own list of US products targeted for retaliatory tariffs.

She also pushed back against White House claims linking Mexico to fentanyl trafficking, calling them “offensive, defamatory, and baseless.”

China Joins the Trade Dispute

China also responded by imposing up to 15% tariffs on select US agricultural exports and expanding export restrictions on American companies.

As tensions escalate, trade relationships between the US, Canada, Mexico, and China continue to strain, with all sides preparing for further economic retaliation.