Ottawa, March 5 – As of March 4, 2025, the United States of America under the Trump Administration has officially imposed its long-promised 25% tariff on imports from Canada due to his dissatisfaction with the measures put in place to combat the trafficking of fentanyl across the border into the U.S.

Following the placement of the tariffs, Prime Minister Justin Trudeau would call President Trump to discuss what might be done to come to a mutual resolution to remove the tariffs placed by both sides. While the exact dialogue is unavailable to the public, President Trump would go onto his Truth Social platform to comment on what had been discussed and his thoughts on the call. According to CTV News, Trump stated that PM Trudeau said that much had already been done about the fentanyl flow into the U.S., to which Trump was dissatisfied, saying that “Governor Justin Trudeau of Canada” was still doing enough through his weak border policies. 

“The call ended in a “somewhat” friendly manner! He was unable to tell me when the Canadian Election is taking place, which made me curious, like, what’s going on here? I then realized he is trying to use this issue to stay in power. Good luck Justin!” – President Donald Trump via Truth Social.

To seek a third party to mediate what is being called the “unwarranted and Unreasonable tariffs” by the U.S., Canada reached out to the World Trade Organization (WTO). This marks the first step in the dispute settlement process, with bilateral consultations being the first stage. If Canada and the U.S. cannot resolve within 60 days, Canada may request adjudication by the WTO through their Dispute Settlement Body; however, this does not mean that any resolution proposed by the WTO will be respected or put into effect by the global superpower behemoth which is the United States under the current administration.

While the largest of the tariffs placed is the 25% on goods tax commonly discussed, the Trump Administration has also issued a 10% rate on Canadian energy exports. The tax has yet to impact consumers directly, but it will likely lead to an increase in cost across many consumer goods, ranging from food products to automobiles. With the incoming Canadian retaliatory tariffs of 25% on $155 billion on imported U.S. goods, according to Canada.ca. 

Expert economist Jeffrey Solomon, President of TD Cowen, has warned that these tariffs will likely lead to a mutually damaging, potentially globally reaching economic downturn on par with a recession. As the tariffs are at 25%, the Canadian consumer can expect prices of everyday goods to rise, also leading to inflationary effects, along with the United States, which seems to have alienated all of its existing trade partners as it places similar tariffs on Mexico and China as well, which are also seeking to place similar retaliatory tariffs on the U.S. Moreover, Due to the complex and intertwined supply chains of Canada and the U.S., the tariffs can lead to significant disruptions and even halt established supply chains in key industries, such as vehicle manufacturing and raw material processing. Early projections by Business Insider show a 2.8% decline in the growth of domestic products in the first quarter of 2025 within the United States. However, long-term consequences remain ambiguous. 

The escalating trade tensions between the United States and Canada leave a margin of failure for both economies that grows by the day as bilateral agreements are not thwarted and neglected by the Trump administration. While Ottawa continues to seek out arrangements in which Canadian business is emboldened, the decades-long established relationships between Canadian and American consumers cannot be rebuilt domestically within 60 days. 

Works Cited

Canada, Department of Finance. “Canada Announces Robust Tariff Package in Response to Unjustified U.S. Tariffs.” Canada.Ca, Government of Canada, 4 Mar. 2025,

www.canada.ca/en/department-finance/news/2025/03/canada-announces-robust-tariff-package-in-response-to-unjustified-us-tariffs.html. 

Staff, CTVNews.ca. “Trump Gives Automakers One Month Delay on Tariffs. Live Updates on the Trade War Here.” CTVNews, 5 Mar. 2025,

www.ctvnews.ca/world/trumps-tariffs/article/trudeau-trump-expected-to-speak-today-as-countries-clash-in-trade-war-follow-the-latest-updates-here/. 

Collins, Sean. “How Scared Should You Be about Tariffs?” Vox, Vox, 5 Feb. 2025,

www.vox.com/explain-it-to-me/398239/tariffs-trump-us-economy-briefly-explained. 

Sor, Jennifer. “Beware a Recession That Could Be Triggered by a Chain Reaction of Tariff Risk, Wall Street Exec Says.” Business Insider, Business Insider,

www.businessinsider.com/recession-2025-trump-tariffs-trade-war-china-canada-mexico-economy-2025-3. Accessed 5 Mar. 2025. 

Le Poidevin, Olivia. “Canada Requests WTO Consultations with Us over ‘Unjustified Tariffs’, Says Ambassador | Reuters.” Canada Requests WTO Consultations with US over “Unjustified Tariffs”, Says Ambassador, Reuters.com, 5 Mar. 2025,

www.reuters.com/markets/canada-requests-wto-consultations-with-us-over-unjustified-tariffs-says-2025-03-05/.