Canada has announced the imposition of 25 percent tariffs on U.S. goods worth C$30 billion in response to U.S. President Donald Trump's matching tariffs on Canadian imports.
On Sunday, Canadian Finance Minister Dominic LeBlanc unveiled a list of U.S. products that will be subject to the new tariffs as part of the first phase of retaliation. The targeted goods include orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products.
\"These measures are a necessary response to the tariffs imposed by the United States,\" LeBlanc said in a statement. \"Canada will always defend its workers and industries.\"
The tariffs are set to take effect on February 4, coinciding 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, 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 these additional tariffs.
The retaliatory move follows Prime Minister Justin Trudeau's vow to respond after President Trump announced 25 percent tariffs on most Canadian products and 10 percent on Canadian energy products, also starting on 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 barring U.S. companies from bidding on Canadian government contracts.
The Canadian Chamber of Commerce has warned 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 C$1,900 per household annually. In the United States, GDP could fall by 1.6 percent, costing an average of $1,300 per household.
Reference(s):
cgtn.com
