In a significant escalation of trade tensions, Canada announced on Sunday that it will impose 25 percent tariffs on U.S. goods worth C$30 billion. This move comes as a direct response to U.S. President Donald Trump's tariffs on Canadian imports, marking the first phase of Canada's retaliation strategy.
Canadian Finance Minister Dominic LeBlanc unveiled the list of targeted U.S. products, which includes everyday items such as orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products. \\"These measures are carefully considered and are intended to encourage the United States to reconsider its unfair tariffs on Canadian goods,\\" LeBlanc stated.
The tariffs are set to take effect on February 4, aligning with the implementation date of the U.S. tariffs on Canadian products. This synchronized timing underscores the escalating trade dispute between the two neighboring countries.
Moreover, Canada plans to impose tariffs on a second set of U.S. imports valued at C$125 billion. This extended 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 tariffs are enforced, a 21-day public consultation period will be held.
The latest actions follow Canadian Prime Minister Justin Trudeau's vow to retaliate against Trump's announcement of imposing 25 percent tariffs on most Canadian products and 10 percent on Canadian energy products starting February 4. \\"Canada will not back down from defending our industries and jobs,\\" Trudeau declared, hinting at the possibility of further non-tariff trade actions. Potential measures include restrictions on exports of critical minerals and energy products to the United States and prohibiting U.S. companies from bidding on Canadian government contracts.
The escalating trade war has raised concerns among business communities. The Canadian Chamber of Commerce warned that the imposition of these 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. Similarly, the United States could see a 1.6 percent drop in GDP, with an average cost of $1,300 per household.
As both nations brace for economic repercussions, global markets are watching closely. The ripple effects of this trade dispute may extend beyond North America, potentially impacting international trade dynamics and economic stability.
Reference(s):
cgtn.com
