Canadian Prime Minister Justin Trudeau announced on Saturday that Canada will impose 25% tariffs on C$155 billion (US$106.5 billion) worth of US goods in response to President Donald Trump's recent executive order imposing tariffs on Canadian and Mexican imports.
In a press conference, Trudeau detailed that C$30 billion of these tariffs would take effect from Tuesday, with the remaining C$125 billion following in 21 days. This decisive move comes as a direct retaliation to Trump's order, which imposes a 25% tariff on all goods from Canada and Mexico starting Tuesday, excluding Canadian energy products that will be subject to a 10% duty.
Trudeau warned of the challenging weeks ahead for Canadians, emphasizing that the US tariffs would have adverse effects not only on Canada but also on American consumers. Addressing Americans, he stated: \"They will raise costs for you, including food at the grocery store, gas at the pump. They will impede your access to an affordable supply of vital goods.\"
Canada's retaliatory tariffs will target a range of American products, including beer, wine, bourbon, fruits, and fruit juices—specifically orange juice from Trump's home state of Florida. Other goods on the list include clothing, sports equipment, and household appliances.
Beyond tariffs, Canada is considering non-tariff measures, potentially affecting critical minerals, energy procurement, and other partnerships, according to Trudeau. He encouraged Canadians to support domestic businesses and consider vacationing within Canada rather than traveling to the United States. \"We didn't ask for this but we will not back down,\" Trudeau affirmed.
This escalating trade dispute between Canada and the United States signals rising tensions that could have wider implications for global trade dynamics. Businesses and investors worldwide are closely monitoring the situation, assessing the potential impacts on supply chains and market stability.
As the world's economies are increasingly interconnected, such trade policies could ripple across global markets, including those in Asia. Stakeholders in Asia's economic landscape may need to brace for potential shifts in trade flows and adjust their strategies accordingly.
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Trudeau announces 25 percent tariffs in response to Trump order
cgtn.com
