In a significant escalation of trade tensions, Canada announced on Sunday a list of U.S. goods worth C$30 billion that will be subject to 25 percent tariffs. This move comes as a direct response to U.S. President Donald Trump's imposition of matching tariffs on Canadian imports.
Canadian Finance Minister Dominic LeBlanc stated that this initial round of retaliatory tariffs targets a range of American 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 this measure, 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, fruits and vegetables, aerospace products, beef, pork, and dairy items. A 21-day public consultation period will precede the enforcement of these additional tariffs.
This development follows Canadian Prime Minister Justin Trudeau's vow of retaliation after President Trump's announcement to impose 25 percent tariffs on most Canadian products and 10 percent on Canadian energy products starting February 4.
Prime Minister Trudeau indicated that further non-tariff trade actions are under consideration. Such measures could encompass 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 expressed concern over the potential economic impact of these escalating trade measures. They warn that the imposition of 25 percent tariffs and full retaliation could lead to a 2.6 percent decline in Canada's real GDP, costing an average of C$1,900 per household annually. In the United States, GDP could fall by 1.6 percent, with an average cost of $1,300 per household.
Reference(s):
cgtn.com
