Canada has announced the imposition of 25 percent tariffs on U.S. products valued at C$30 billion, marking the first phase of its response to U.S. President Donald Trump's reciprocal tariffs on Canadian imports.
Canadian Finance Minister Dominic LeBlanc revealed that the targeted products include orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper goods. These tariffs are set to take effect on February 4, aligning with the implementation date of the U.S. tariffs on Canadian exports.
In addition to the initial measures, Canada plans to introduce a second set of tariffs targeting U.S. imports worth C$125 billion. This forthcoming list is expected to cover passenger cars, trucks, buses, steel and aluminum products, select fruits and vegetables, aerospace products, and various meat and dairy items. A 21-day public consultation period will precede the enforcement of these additional tariffs.
The move follows Canadian Prime Minister Justin Trudeau's commitment to retaliate after Trump's announcement of imposing 25 percent tariffs on most Canadian products and 10 percent on Canadian energy products. Trudeau has also indicated that Canada is considering further non-tariff measures, including restrictions on the export of critical minerals and energy products to the United States, and potential blocks on U.S. companies bidding for Canadian government contracts.
The Canadian Chamber of Commerce has warned that these tariffs and further retaliatory actions could lead to a 2.6 percent decline in Canada's real GDP, translating to an average cost of 1,900 Canadian dollars per household annually. In the United States, the Chamber predicts a 1.6 percent GDP reduction, costing an average of $1,300 per household.
Reference(s):
cgtn.com
