Canada has announced retaliatory tariffs of 25% on US goods valued at C$30 billion, escalating tensions in a growing trade dispute with the United States.
On Sunday, Canadian Finance Minister Dominic LeBlanc unveiled a list of US products that will face the new tariffs, effective February 4. The targeted goods include everyday items such as orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products.
The move coincides with the implementation of US tariffs on Canadian products, following President Donald Trump's decision to impose 25% tariffs on most Canadian imports and 10% on Canadian energy products starting the same day.
Prime Minister Justin Trudeau vowed retaliation after Trump's announcement, stating that Canada would protect its economic interests. "We will not stand by while our trading partners take unfair actions that hurt our industries and workers," Trudeau said late on Saturday.
In addition to the initial tariffs, Canada plans to implement a second round of tariffs on US imports valued at C$125 billion. This list, to be released in the coming days, is expected to 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.
Trudeau also indicated that more non-tariff measures are under consideration. Potential actions include restrictions on exports of critical minerals and energy products to the United States and barring US companies from bidding on Canadian government contracts.
The Canadian Chamber of Commerce has expressed concern over the escalating trade tensions. It warned that the imposition of the 25% tariffs and full retaliation could result in a 2.6% decline in Canada's real GDP, costing an average of C$1,900 per household annually. The United States could also face economic repercussions, with an estimated 1.6% drop in GDP and an average cost of $1,300 per household.
Read More:
- Retaliation, Inflation, Disruption: What You Need to Know About Trump Tariffs
- Analysis: Are Trump's Tariff Plans for Canada and Mexico Real Threats?
Reference(s):
cgtn.com
