Canada has unveiled a list of U.S. goods worth 30 billion Canadian dollars that will be subject to a 25% tariff, marking the first phase of its retaliation against U.S. President Donald Trump's tariffs on Canadian imports.
Announced on Sunday by Canadian Finance Minister Dominic LeBlanc, the tariffs target a range of U.S. products including orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products.
The new tariffs are set to take effect on February 4, coinciding with the implementation of U.S. tariffs on Canadian products.
In a bold move to escalate the trade dispute, Canada plans to impose tariffs on a second set of U.S. imports valued at 125 billion Canadian dollars. This forthcoming list, to be released in the coming days, will encompass passenger cars, trucks, buses, steel and aluminum products, various fruits and vegetables, aerospace products, beef, pork, and dairy items.
Before these additional tariffs are enforced, the government has initiated a 21-day public consultation period to gather input from stakeholders.
The action comes after Prime Minister Justin Trudeau vowed retaliation following President Trump's announcement to impose 25% tariffs on most Canadian products and 10% on Canadian energy products starting February 4.
\"We will not stand by while our economy and workers are threatened,\" Trudeau said in a statement. \"Canada will defend its interests and respond appropriately.\"
Beyond tariffs, Trudeau indicated that more non-tariff trade actions are being considered. These could include restrictions on exports of critical minerals and energy products to the United States, as well as prohibiting U.S. companies from bidding on Canadian government contracts.
The Canadian Chamber of Commerce has issued a warning that the escalating trade war could have significant economic repercussions. The imposition of 25% tariffs and full retaliation could result in a 2.6% decline in Canada's real GDP, costing an average of 1,900 Canadian dollars per household annually. In the United States, the GDP could fall by 1.6%, costing an average of $1,300 per household.
As tensions rise between the two neighboring countries, businesses and consumers on both sides of the border are bracing for the impact of the escalating tariffs. Analysts are concerned that prolonged trade disputes could disrupt supply chains, increase consumer prices, and hinder economic growth.
Reference(s):
cgtn.com
