In a significant move, Canada unveiled a list of U.S. products worth C$30 billion that will be subject to 25 percent tariffs. This decision marks the first phase of retaliation against U.S. President Donald Trump's matching tariffs on Canadian imports.
Canadian Finance Minister Dominic LeBlanc announced that the tariffs will target a variety of products, including orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products. These tariffs are set to take effect on February 4, aligning with the implementation of U.S. tariffs on Canadian goods.
Beyond the initial list, Canada has plans to impose tariffs on a second set of U.S. imports valued at C$125 billion. This upcoming list is expected to include passenger cars, trucks, buses, steel and aluminum products, certain 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.
The latest developments follow Canadian Prime Minister Justin Trudeau's vow of retaliation after President Trump announced 25 percent tariffs on most Canadian products and 10 percent on Canadian energy products effective February 4. Trudeau indicated that Canada is considering additional non-tariff trade measures, which may involve restrictions on exports of critical minerals and energy products to the United States, as well as preventing U.S. companies from bidding on Canadian government contracts.
Economic repercussions of these tariffs are a concern. The Canadian Chamber of Commerce has warned that the 25 percent tariffs and full retaliation could lead to a 2.6 percent decline in Canada's real GDP, equating to an average cost of 1,900 Canadian dollars per household annually. In the United States, the GDP is expected to fall by 1.6 percent, with each household bearing an average cost of $1,300.
Reference(s):
cgtn.com
