Canada unveiled a significant list of US goods worth C$30 billion on Sunday, announcing a 25 percent tariff as part of its first phase of retaliation against US President Donald Trump's tariffs on Canadian imports.
The targeted US products include a wide array of consumer goods such as orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products, Canadian Finance Minister Dominic LeBlanc stated in a press release.
The imposed tariffs are set to take effect on February 4, aligning with the commencement of US tariffs on Canadian products.
In addition to this initial measure, Canada plans to impose tariffs on a second set of US imports valued at C$125 billion. This second list, expected to be released in the coming days, will encompass 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 tariffs on this second list.
The escalation follows Canadian Prime Minister Justin Trudeau's promise of retaliation after President Trump's announcement of imposing 25 percent tariffs on most Canadian products and 10 percent on Canadian energy products starting February 4.
Prime Minister Trudeau indicated that further non-tariff trade actions are under consideration. These measures could include restrictions on the export of critical minerals and energy products to the United States, as well as prohibiting US companies from bidding on Canadian government contracts.
The Canadian Chamber of Commerce has expressed concerns over the potential economic impact. They warn that the imposition of 25 percent tariffs and full retaliation could lead to a 2.6 percent 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 percent, with an average cost of $1,300 per household.
Reference(s):
cgtn.com
