Canada has announced a 25% tariff on US goods worth C$30 billion as part of the first phase of retaliation against US President Donald Trump\u0027s tariffs on Canadian imports.
On Sunday, Canadian Finance Minister Dominic LeBlanc unveiled a list of US products that will be subject to the tariffs starting February 4. The targeted goods include everyday items such as orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products.
\"This decisive action is in response to the US administration\u0027s unjust tariffs on Canadian products,\" LeBlanc stated. \"Canada will always defend its workers and industries.\"
The tariffs coincide with the implementation of US tariffs on Canadian goods, marking an escalation in trade tensions between the two nations.
Second Wave of Tariffs Planned
In addition to the initial list, Canada plans to impose tariffs on a second set of US imports valued at C$125 billion. This second list, to be released in the coming days, will cover a broader range of products, including passenger cars, trucks, buses, steel and aluminum products, certain fruits and vegetables, aerospace products, beef, pork, and dairy items.
A 21-day public consultation period will precede the enforcement of tariffs on the second list, allowing industries and stakeholders to provide input.
Potential Economic Impact
The Canadian Chamber of Commerce has warned that the imposition of these tariffs and full retaliation could result in a 2.6% decline in Canada\u0027s real GDP, costing an average of C$1,900 per household annually. In the United States, GDP could fall by 1.6%, with an average cost of $1,300 per household.
Canadian Prime Minister Justin Trudeau, speaking late on Saturday, vowed further retaliation following Trump\u0027s announcement of tariffs on Canadian products. Trudeau indicated that additional non-tariff trade actions are being considered, which may include restrictions on exports of critical minerals and energy products to the US, as well as blocking US companies from bidding on Canadian government contracts.
\"We will not back down,\" Trudeau emphasized. \"Canada will defend its national interests and stand up for its citizens.\"
Escalating Trade Tensions
This development marks a significant escalation in trade tensions between Canada and the United States, two nations with long-standing economic ties. The mutual imposition of tariffs could have far-reaching implications not only for North America but also for global trade dynamics.
The international community is watching closely as the situation unfolds, with potential ripple effects on markets worldwide. Businesses, investors, and economists are assessing the potential impact on supply chains, commodity prices, and international trade agreements.
Reference(s):
cgtn.com
