Canada has unveiled a new round of tariffs on U.S. goods worth C$30 billion, imposing a 25 percent levy as part of its first phase of retaliation against U.S. President Donald Trump's tariffs on Canadian imports.
On Sunday, Canadian Finance Minister Dominic LeBlanc announced that the tariffs will target a range of U.S. products, including orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products. The tariffs are set to take effect on February 4, coinciding with the implementation of U.S. tariffs on Canadian products.
\"Canada will not stand by while our trading relationship is undermined,\" LeBlanc stated. \"These measures are an appropriate and measured response to the U.S. tariffs.\"
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, certain fruits and vegetables, aerospace products, beef, pork, and dairy items. A 21-day public consultation period will precede the enforcement of these additional tariffs.
The escalation follows Canadian Prime Minister Justin Trudeau's vow to retaliate after Trump's announcement of imposing 25 percent tariffs on most Canadian products and 10 percent on Canadian energy products starting February 4.
Trudeau indicated that more non-tariff trade actions are under consideration, which could include restrictions on exports of critical minerals and energy products to the United States, as well as barring U.S. companies from bidding on Canadian government contracts.
The Canadian Chamber of Commerce has warned that the imposition of these tariffs and full retaliation could result in a 2.6 percent decline in Canada's real GDP, costing an average of 1,900 Canadian dollars per household annually. In the United States, GDP could fall by 1.6 percent, costing an average of $1,300 per household.
The trade tensions between the two neighboring countries mark a significant strain on a historically strong economic relationship, raising concerns over the broader impact on global trade and economic stability.
Reference(s):
cgtn.com
