Ottawa, Sunday — Canada has announced the imposition of 25% tariffs on U.S. goods worth C$30 billion, marking the first phase of retaliation against U.S. President Donald Trump's tariffs on Canadian imports.
Unveiled on Sunday, the list targets a range of U.S. products, including orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products. Canadian Finance Minister Dominic LeBlanc stated that these tariffs will take effect on February 4, coinciding with the implementation of U.S. tariffs on Canadian products.
\"Canada will not stand by while our producers and workers are unfairly targeted,\" LeBlanc said in a statement. \"Our response is carefully measured to protect our interests while remaining consistent with international trade obligations.\"
In addition to the initial tariffs, Canada plans to impose duties on a second set of U.S. imports valued at C$125 billion. This second list, expected to be released in the coming days, will 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 tariffs on this second set.
The move comes after Prime Minister Justin Trudeau vowed retaliation following Trump's announcement of imposing 25% tariffs on most Canadian products and 10% on Canadian energy products starting February 4.
\"We will defend our country's interests vigorously,\" Trudeau declared on Saturday. \"Additional measures are being considered, including non-tariff actions such as restricting exports of critical minerals and energy products to the United States, and blocking U.S. companies from bidding on Canadian government contracts.\"
The escalating trade tensions have raised concerns on both sides of the border. The Canadian Chamber of Commerce warned that the reciprocal tariffs could lead to a 2.6% 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%, with an average cost of $1,300 per household.
As the situation develops, businesses and consumers are bracing for the impact of what could become a significant disruption to North American trade. Stakeholders hope for a resolution that will ease tensions and restore stability to the economic relationship between Canada and the United States.
Reference(s):
cgtn.com
