In a significant escalation of trade tensions, Canada on Sunday announced it will impose 25 percent tariffs on U.S. goods worth 30 billion Canadian dollars (approximately $24 billion USD). This move comes as a direct retaliation against U.S. President Donald Trump's recent tariffs on Canadian imports.
The Canadian Finance Minister, Dominic LeBlanc, unveiled the list of targeted products, which includes 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 new U.S. tariffs on Canadian goods.
\"Canada will not stand by while our domestic industries and workers are unfairly targeted,\" LeBlanc stated. \"Our response is measured and proportionate, and we are prepared to defend our economic interests.\"
Beyond the initial round of tariffs, Canada plans to introduce a second set targeting U.S. imports valued at 125 billion Canadian dollars. This forthcoming list, which will be made public in the coming days, is expected to include passenger cars, trucks, buses, steel and aluminum products, fruits and vegetables, aerospace products, and various agricultural items such as beef, pork, and dairy. The government has indicated there will be a 21-day public consultation period before these additional tariffs are enforced.
The retaliation follows Prime Minister Justin Trudeau's vow on Saturday to respond firmly to the U.S. measures. Trudeau hinted at the potential for further non-tariff trade actions, including restrictions on the export of critical minerals and energy products to the United States, as well as barring U.S. companies from bidding on Canadian government contracts.
\"We are committed to supporting our industries and protecting Canadian jobs,\" Trudeau said. \"These tariffs are unacceptable, and we will respond in a way that is strong but measured.\"
The Canadian Chamber of Commerce has expressed concern over the escalating trade dispute. It warned that the imposition of 25 percent tariffs and full retaliation could lead to a 2.6 percent decline in Canada's real GDP, costing households an average of 1,900 Canadian dollars annually. Similarly, the U.S. could see its GDP fall by 1.6 percent, with an average cost of $1,300 per household.
Trade analysts are watching closely as the situation unfolds, noting that the ripple effects could disrupt supply chains and impact global markets. Both nations are major trading partners, and prolonged tensions could have significant economic consequences beyond their borders.
Potential Impact on Asian Markets
The trade dispute between Canada and the United States may have broader implications for global trade dynamics, including in Asia. Investors and market analysts are monitoring the situation for potential effects on commodity prices, particularly in sectors where North America plays a significant role.
Asian businesses and governments are likely to assess the evolving landscape, considering adjustments in trade relations and supply chain strategies in response to the North American tensions.
Reference(s):
cgtn.com
