In a significant escalation of trade tensions between Canada and the United States, the Canadian government announced on Sunday that it will impose 25% tariffs on a range of US goods valued at C$30 billion. This move comes as a direct response to US President Donald Trump's tariffs on Canadian imports, set to take effect on February 4.
Canadian Finance Minister Dominic LeBlanc outlined the details in a statement, specifying that the tariffs will target products including orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products. \"These measures are a necessary response to the unfair tariffs imposed by the United States,\" LeBlanc said.
The Canadian tariffs are scheduled to take effect on February 4, mirroring the implementation date of the US tariffs on Canadian goods.
Plans for Additional Tariffs
In addition to the initial list, Canada plans to introduce tariffs on a second set of US imports valued at C$125 billion. The forthcoming list, expected 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, there will be a 21-day public consultation period, allowing stakeholders to provide input on the proposed measures.
Heightened Trade Dispute
The retaliatory action follows Prime Minister Justin Trudeau's vow to respond to the US tariffs announced by President Trump late on Saturday. The US plans 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 citizens are unfairly targeted,\" Trudeau stated. He also indicated that Canada is considering further non-tariff trade actions, which could include restrictions on the export of critical minerals and energy products to the United States and barring US companies from bidding on Canadian government contracts.
Economic Impact
The escalating trade dispute has raised concerns among businesses and economists. The Canadian Chamber of Commerce warned that the imposition of 25% tariffs and full retaliation could lead to a 2.6% decline in Canada's real GDP, costing households an average of C$1,900 annually. In the United States, GDP is projected to fall by 1.6%, with an average cost of $1,300 per household.
Global Implications
The escalating trade tensions between the two neighboring countries have significant implications for global trade dynamics. Analysts warn that prolonged disputes could disrupt supply chains, increase consumer prices, and strain international trade relations.
Reference(s):
cgtn.com
