Canada Imposes 25% Tariffs on US Goods Worth C$30 Billion in Retaliation
Canada has announced its plan to impose 25% 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.
On Sunday, Canadian Finance Minister Dominic LeBlanc unveiled a list of US products that will be subject to the new tariffs starting February 4, coinciding with the implementation of US tariffs on Canadian products. The targeted goods include everyday items such as orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products.
In addition to this initial set of tariffs, Canada is preparing a second list of US imports worth C$125 billion. Expected to be released in the coming days, this list will potentially subject passenger cars, trucks, buses, steel and aluminum products, certain fruits and vegetables, aerospace products, beef, pork, and dairy items to tariffs. Before these measures take effect, there will be a 21-day public consultation period.
Canadian Prime Minister Justin Trudeau vowed retaliation following President Trump's announcement of imposing 25% tariffs on most Canadian products and 10% on Canadian energy products starting February 4. Trudeau indicated that Canada is considering further non-tariff trade actions, which could include restrictions on exports of critical minerals and energy products to the United States, as well as barring US companies from bidding on Canadian government contracts.
The escalating trade tensions have raised concerns among business communities. The Canadian Chamber of Commerce warned that the imposition of the 25% tariffs and full retaliation could result in a 2.6% decline in Canada's real GDP, translating to an average loss of C$1,900 per household annually. In the United States, the GDP could fall by 1.6%, with an average cost of $1,300 per household.
As both nations grapple with the repercussions of these trade policies, industries and consumers on both sides of the border may face significant economic challenges in the coming months.
Reference(s):
cgtn.com
