Canada threatens to halt minerals, electricity as tariff spat rages

By Hannah Northey | 03/04/2025 04:18 PM EST

Energy and raw materials are in the crosshairs of a trade war President Donald Trump has launched against Canada, Mexico and China.

Justin Trudeau speaks during a news conference as (left to right) Foreign Minister Mélanie Joly, Minister of Finance and Intergovernmental Affairs Dominic LeBlanc, and Minister of Public Safety David McGuinty look on.

Canada's Prime Minister Justin Trudeau speaks during a news conference about the U.S. tariffs against Canada on Tuesday on Parliament Hill in Ottawa, as (left to right) Foreign Minister Mélanie Joly, Minister of Finance and Intergovernmental Affairs Dominic LeBlanc, and Minister of Public Safety David McGuinty look on. Dave Chan/AFP via Getty Images

U.S. allies moved to punish electricity prices and threatened to cut off shipments of valuable minerals like high-grade nickel used in military and energy technology as President Donald Trump moved forward with imposing tariffs on goods from Canada, Mexico and China.

Canadian Prime Minister Justin Trudeau at a news conference Monday told reporters that his country is responding by imposing 25 percent tariffs on billions of dollars’ worth of American goods — using a phased-in approach — until the Trump administration withdraws its duties. Mexico’s president said retaliatory tariffs would arrive Sunday.

Calling it an “unjustified trade war,” Trudeau said Trump is angling to destroy his country’s economy so it can be annexed, but that Canada will “never be the 51st state” and that he plans to fight the duties with retaliatory measures. Trudeau also defended his country’s push to thwart fentanyl and said the premise for the tariffs is inaccurate.

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“Your government has chosen to do this to you,” Trudeau said, directly addressing Americans. “They’ve chosen to harm American national security, impeding access to the abundant critical minerals, energy, building materials and fertilizers that we have and that the United States needs to grow and prosper.”

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