Canada on Sunday announced a new set of tariffs targeting U.S. products worth C$30 billion, marking the first phase of its retaliation against U.S. President Donald Trump's recent tariff measures on Canadian imports.
Canadian Finance Minister Dominic LeBlanc stated that the 25 percent tariffs will apply to a variety of goods, including orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products. These tariffs are scheduled to take effect on February 4, aligning with the commencement of U.S. tariffs on Canadian goods.
In addition to the initial list, Canada plans to introduce tariffs on a second group of U.S. imports valued at C$125 billion. This upcoming list will encompass passenger cars, trucks, buses, steel and aluminum products, certain fruits and vegetables, aerospace products, beef, pork, and dairy items. Before enforcing tariffs on this second list, Canada will conduct a 21-day public consultation period.
The latest developments follow Canadian Prime Minister Justin Trudeau's pledge for retaliation after President Trump announced 25 percent tariffs on most Canadian products and 10 percent on Canadian energy products starting February 4. Trudeau also mentioned the consideration of additional non-tariff trade actions, which might include restrictions on exports of critical minerals and energy products to the United States, as well as prohibiting U.S. companies from bidding on Canadian government contracts.
The Canadian Chamber of Commerce has warned that the imposition of these tariffs could lead to a 2.6 percent decline in Canada's real GDP, translating to an average annual cost of 1,900 Canadian dollars per household. In the United States, GDP is expected to decrease by 1.6 percent, with an average annual cost of $1,300 per household.
Reference(s):
cgtn.com
