Canada announced on Sunday that it will impose 25 percent tariffs on a range of US goods valued at C$30 billion, marking the first phase of its retaliation against US President Donald Trump's tariffs on Canadian imports.
The initial round of tariffs targets products including orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products, according to a statement by Canadian Finance Minister Dominic LeBlanc.
\"These measures are in direct response to the US tariffs on Canadian products and are necessary to protect our economic interests,\" LeBlanc said.
The tariffs are set to take effect on February 4, aligning with the implementation date of the US tariffs on Canadian goods.
Canada also plans to impose tariffs on a second list of US imports worth C$125 billion. This list, to be published 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 these additional tariffs.
The move comes after Prime Minister Justin Trudeau vowed immediate retaliation following Trump's announcement of imposing 25 percent tariffs on most Canadian products and 10 percent on Canadian energy products starting February 4.
Trudeau indicated that further non-tariff trade actions are under consideration. These could 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 warned of significant economic repercussions. The imposition of these tariffs and full retaliation could lead to a 2.6 percent decline in Canada's real GDP, costing households an average of C$1,900 annually. In the US, GDP could fall by 1.6 percent, with a potential cost of $1,300 per household.
As tensions escalate between the two nations, businesses and consumers on both sides of the border brace for the impact of the unfolding trade dispute.
Reference(s):
cgtn.com
