Canada has announced a sweeping set of tariffs on US goods worth C$30 billion, marking the first phase of retaliation against US President Donald Trump's recent tariffs on Canadian imports.
On Sunday, Canadian Finance Minister Dominic LeBlanc unveiled a list of American products that will face a 25 percent tariff starting February 4. The targeted items include everyday consumer goods such as orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products.
\"Canada will not stand by while our economy is threatened,\" LeBlanc stated. \"These measures are designed to protect Canadian interests and ensure that trade remains fair and reciprocal.\"
The timing of Canada's tariffs coincides with the implementation of US tariffs on Canadian products, intensifying trade tensions between the two neighboring nations.
In a bold move, Canada also plans to impose tariffs on a second set of US imports valued at C$125 billion. This list, set to be released in the coming days, will encompass a wide range of goods including passenger cars, trucks, buses, steel and aluminum products, certain fruits and vegetables, aerospace products, beef, pork, and dairy items. The government has announced a 21-day public consultation period before enforcing the second wave of tariffs.
Canadian Prime Minister Justin Trudeau has hinted at further actions beyond tariffs. \"We are considering all options to defend our nation's economic interests,\" Trudeau declared late Saturday. Potential measures include restrictions on exports of critical minerals and energy products to the United States, as well as limiting US companies' ability to bid on Canadian government contracts.
The escalating trade dispute has raised concerns among business leaders and economists. The Canadian Chamber of Commerce warned that the mutual imposition of 25 percent tariffs could lead to a 2.6 percent decline in Canada's real GDP, costing households an average of C$1,900 annually. In the United States, the projected impact is a 1.6 percent drop in GDP, with households losing an average of $1,300 per year.
The unfolding situation underscores the fragile state of international trade relations and the potential ripple effects on the global economy. Investors, businesses, and consumers alike are watching closely as the two countries navigate this challenging period.
Reference(s):
cgtn.com
