Canada on Sunday announced a significant move in its ongoing trade dispute with the United States by imposing 25% tariffs on U.S. products valued at C$30 billion. This action marks the first phase of Canada’s retaliation against U.S. President Donald Trump's decision to impose matching tariffs on Canadian imports.
The targeted U.S. goods include a diverse range of products such as orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products, according to Canadian Finance Minister Dominic LeBlanc.
These tariffs are set to take effect on February 4, aligning with the implementation date of U.S. tariffs on Canadian goods. Additionally, Canada has announced plans to impose a second set of tariffs on U.S. imports valued at C$125 billion. This second list, which will be released in the coming days, is expected to include passenger cars, trucks, buses, steel and aluminum products, certain fruits and vegetables, aerospace products, as well as beef, pork, and dairy items. Before enforcing tariffs on this second batch, there will be a 21-day public consultation period.
This latest development follows Canadian Prime Minister Justin Trudeau's promise of retaliation after Trump’s announcement of 25% tariffs on most Canadian products and 10% tariffs on Canadian energy products starting February 4. Trudeau has also indicated that further non-tariff trade measures are under consideration, which may include restrictions on exports of critical minerals and energy products to the United States, as well as barring U.S. companies from bidding on Canadian government contracts.
The Canadian Chamber of Commerce has cautioned that the imposition of 25% tariffs and full retaliation could lead to a 2.6% decline in Canada’s real GDP, translating to an average annual cost of 1,900 Canadian dollars per household. In the United States, the GDP is projected to fall by 1.6%, with an average annual cost of $1,300 per household.
Reference(s):
cgtn.com
