Canada Prime Minister Justin Trudeau said that 25% tariffs on C$155 billion ($106.5 billion) of U.S. goods would be imposed.
Tariff on C$30 billion would take effect from 4 February and on C$125 billion in 21 days.
Earlier, Trump signed an executive order imposing 25% tariffs on all goods from Canada and Mexico and a 10% additional Tariff on China.
Energy imported from Canada, including oil, natural gas and electricity, would be taxed at a 10 per cent rate.
The US government has imposed tariffs to force these three countries to stop the spread and manufacturing of fentanyl.
In response, Canada has imposed tariffs on 1,256 products, or 17% of all the products imported from the United States.
Canada’s government is also planning to take legal action under the relevant international bodies to challenge the 25% tariffs imposed by the United States on most Canadian goods.
Mexico and Canada are the top two U.S. trading partners.