Canada has fired back in the escalating trade dispute with the United States, unveiling a list of U.S. goods worth C$30 billion to be subjected to 25 percent tariffs. The announcement on Sunday marks the first phase of Canada's retaliation against U.S. President Donald Trump's matching tariffs on Canadian imports.
This initial round targets a variety of American products, including orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products, as detailed by Canadian Finance Minister Dominic LeBlanc in a statement. The tariffs are set to take effect on February 4, aligning with the implementation of U.S. tariffs on Canadian goods.
In addition to the initial measures, 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 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 latest development follows Canadian Prime Minister Justin Trudeau's promise of retaliation after President Trump's announcement to impose 25 percent tariffs on most Canadian products and 10 percent on Canadian energy products starting February 4.
Trudeau indicated that additional non-tariff trade actions are under consideration. These could 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 Canadian Chamber of Commerce has cautioned that these escalating trade measures could have significant economic repercussions. The imposition of 25 percent tariffs and full retaliation may 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.
The intensifying trade tensions between Canada and the United States raise concerns about broader implications for the global economy. Markets across Asia are watchful, as disruptions in North American trade can ripple through international supply chains, affecting Asian exporters and investors. Analysts suggest that prolonged disputes may lead to increased volatility in global markets, emphasizing the interconnected nature of modern economies.
Reference(s):
cgtn.com
