Canada has unveiled a list of U.S. goods worth C$30 billion that will be subject to 25 percent tariffs, marking the first phase of its retaliation against U.S. President Donald Trump's tariffs on Canadian imports.
On Sunday, Canadian Finance Minister Dominic LeBlanc announced that the new tariffs will target a range of U.S. products, including orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products. The tariffs are set to take effect on February 4, aligning with the implementation of U.S. tariffs on Canadian products.
In addition to the initial list, Canada plans to impose tariffs on a second set of 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, some fruits and vegetables, aerospace products, beef, pork, and dairy items. A 21-day public consultation period will precede the enforcement of tariffs on these additional goods.
The action comes after Canadian Prime Minister Justin Trudeau vowed retaliation following President Trump's announcement to impose 25 percent tariffs on most Canadian products and 10 percent on Canadian energy products starting February 4.
Trudeau indicated that more non-tariff trade actions are being considered. These could include restrictions on exports of critical minerals and energy products to the United States, as well as blocking U.S. companies from bidding on Canadian government contracts.
The Canadian Chamber of Commerce has warned about the potential economic impact of the escalating trade dispute. It cautioned that the imposition of 25 percent tariffs and full retaliation could result in a 2.6 percent decline in Canada's real GDP, costing an average of 1,900 Canadian dollars per household annually. In the United States, GDP could decline by 1.6 percent, with an average cost of $1,300 per household.
The rising trade tensions between Canada and the United States have sparked concerns among businesses and consumers in both countries. There are growing calls for a diplomatic resolution to prevent further economic disruption.
Reference(s):
cgtn.com
