Canada has unveiled a list of US goods worth C$30 billion that will be subject to a 25% tariff, marking the first phase of retaliation against US President Donald Trump's tariffs on Canadian imports.
Canadian Finance Minister Dominic LeBlanc announced on Sunday that the tariffs, effective February 4, will target a range of products including orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products. This move coincides with the implementation of US tariffs on Canadian products.
\"Canada will not stand idle while our vital economic interests are threatened,\" LeBlanc stated. \"These measures are a firm and proportional response to the unfair tariffs imposed by the United States.\"
In addition to the initial tariffs, Canada plans to impose duties on a second set of US imports valued at C$125 billion. This list, to be released soon, will encompass passenger cars, trucks, buses, steel and aluminum products, certain fruits and vegetables, aerospace products, beef, pork, and dairy items.
The government has indicated there will be a 21-day public consultation period before the second round of tariffs is enforced.
Prime Minister Justin Trudeau, speaking late Saturday, emphasized that further non-tariff trade actions are under consideration. These could include restrictions on exports of critical minerals and energy products to the US and blocking US companies from bidding on Canadian government contracts.
The Canadian Chamber of Commerce has warned of significant economic repercussions, noting that the imposition of 25% tariffs and full retaliation could lead to a 2.6% decline in Canada's real GDP, costing an average of C$1,900 per household annually. The United States could see a 1.6% drop in GDP, with an average cost of $1,300 per household.
As trade tensions escalate, businesses and investors on both sides of the border are bracing for potential disruptions in supply chains and increases in consumer prices.
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Reference(s):
cgtn.com
