Canada has announced the imposition of 25 percent tariffs on U.S. goods worth C$30 billion, marking the first phase of its retaliation against U.S. President Donald Trump's matching tariffs on Canadian imports.
On Sunday, Canadian Finance Minister Dominic LeBlanc unveiled a list of American products that will be subject to these new tariffs. The targeted goods include everyday items such as 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 date of the U.S. tariffs on Canadian products.
Second Wave of Tariffs Planned
In addition to the initial measures, Canada plans to impose tariffs on a second set of U.S. imports valued at C$125 billion. This expanded list, expected to be released in the coming days, will encompass passenger cars, trucks, buses, steel and aluminum products, various fruits and vegetables, aerospace products, beef, pork, and dairy items.
A 21-day public consultation period will precede the enforcement of tariffs on the second list, allowing stakeholders to provide input.
Retaliation Against U.S. Tariffs
The latest developments follow Prime Minister Justin Trudeau's promise of retaliation after President Trump announced a 25 percent tariff on most Canadian products and a 10 percent tariff on Canadian energy products, also effective from February 4.
Trudeau indicated that Canada is considering additional non-tariff trade actions. Potential measures include restricting exports of critical minerals and energy products to the United States and barring U.S. companies from bidding on Canadian government contracts.
Economic Impacts Anticipated
The Canadian Chamber of Commerce has cautioned that the mutual imposition of tariffs could have significant economic repercussions. It estimates a potential 2.6 percent decline in Canada's real GDP, translating to an average cost of C$1,900 per household annually. The United States could also see a 1.6 percent drop in GDP, with an average cost of $1,300 per household.
As both nations brace for economic turbulence, global markets are closely monitoring the escalating trade tensions between these two major economies.
Reference(s):
cgtn.com
