In a significant escalation of trade tensions, Canada announced on Sunday that it will impose 25 percent tariffs on U.S. goods worth 30 billion Canadian dollars (approximately 23 billion USD). This move comes as a direct response to U.S. President Donald Trump's recent tariffs on Canadian imports.
Canadian Finance Minister Dominic LeBlanc unveiled the list of targeted U.S. products, which includes a range of consumer goods such as orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products. The tariffs are set to take effect on February 4, coinciding with the implementation of U.S. tariffs on Canadian products.
Second Wave of Tariffs on the Horizon
In addition to this initial round of tariffs, Canada plans to impose duties on a second set of U.S. imports valued at 125 billion Canadian dollars. The forthcoming 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.
According to the statement, there will be a 21-day public consultation period before these additional tariffs are enforced, allowing stakeholders to provide input on the proposed measures.
Escalating Trade Dispute
The latest development follows Canadian Prime Minister Justin Trudeau's vow to retaliate against the U.S.'s aggressive trade policies. Late on Saturday, President Trump announced plans to impose 25 percent tariffs on most Canadian products and 10 percent on Canadian energy products starting February 4.
Prime Minister Trudeau indicated that more non-tariff trade actions are under consideration. These could include restrictions on exports of critical minerals and energy products to the United States, as well as measures to block U.S. companies from bidding on Canadian government contracts.
Economic Impact and Concerns
The Canadian Chamber of Commerce has issued a warning regarding the potential economic fallout. The imposition of 25 percent tariffs and full retaliation could lead to a 2.6 percent decline in Canada's real GDP, costing an average of 1,900 Canadian dollars per household annually. In the United States, GDP could fall by 1.6 percent, resulting in an average loss of $1,300 per household.
The escalating trade dispute between these two major economies has sparked concerns over global economic stability. Businesses, investors, and analysts worldwide are closely monitoring the situation, given the potential ripple effects on international markets.
Reference(s):
cgtn.com
