Canada has announced a list of U.S. goods worth C$30 billion that will be subject to a 25% tariff, marking the first phase of retaliation against U.S. President Donald Trump's recent tariffs on Canadian imports.
On Sunday, Canadian Finance Minister Dominic LeBlanc stated that the new tariffs will target products such as orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products.
The tariffs are set to take effect on February 4, aligning with the implementation of U.S. tariffs on Canadian products.
In addition to the initial list, Canada plans to impose tariffs on a second set of U.S. imports valued at C$125 billion. This second list, to be released in the coming days, will include passenger cars, trucks, buses, steel and aluminum products, various fruits and vegetables, aerospace products, beef, pork, and dairy items. There will be a 21-day public consultation period before these tariffs are enforced.
This development follows Canadian Prime Minister Justin Trudeau's vow to retaliate after President Trump announced he would impose 25% tariffs on most Canadian products and 10% on Canadian energy products starting February 4.
Trudeau indicated that more non-tariff trade actions are being considered, which could include restrictions on exports of critical minerals and energy products to the United States, as well as blocking U.S. companies from bidding on Canadian government contracts.
The Canadian Chamber of Commerce has warned that the imposition of 25% tariffs and full retaliation could lead to a 2.6% decline in Canada's real GDP, costing an average of C$1,900 per household annually. In the United States, GDP could fall by 1.6%, costing an average of $1,300 per household.
As trade tensions escalate between the two neighboring countries, businesses and consumers on both sides of the border brace for the potential economic impact.
Reference(s):
cgtn.com
