Canada Retaliates: Trudeau Announces 25% Tariffs on US Goods in Response to Trump Order
In a bold response to new U.S. trade measures, Canadian Prime Minister Justin Trudeau announced on Saturday that Canada will impose 25% tariffs on C$155 billion (US$106.5 billion) worth of American goods. This decision comes after U.S. President Donald Trump's executive order imposing similar tariffs on Canadian and Mexican imports.
\"We didn't ask for this but we will not back down,\" Trudeau declared during a press conference, emphasizing Canada's commitment to defending its economic interests. The initial wave of Canadian tariffs, amounting to C$30 billion, will take effect from Tuesday, with the remaining C$125 billion following in 21 days.
U.S. Tariffs Spark Trade Tensions
President Trump's executive order, signed earlier on Saturday, enacts 25% tariffs on all goods from Canada and Mexico starting Tuesday, excluding Canadian energy products, which will face a 10% duty. The move has escalated trade tensions between the neighboring countries, with potential repercussions for consumers and businesses on both sides of the border.
Trudeau warned that the coming weeks would be challenging for Canadians and cautioned that the U.S. tariffs would also negatively impact American citizens. Addressing Americans directly, he said, \"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.\"
Targeted Goods and Potential Measures
The Canadian tariffs will target a range of American products, including beer, wine, bourbon, fruits, and fruit juices, notably orange juice from Florida—President Trump's home state. Other affected goods include clothing, sports equipment, and household appliances.
In addition to tariffs, Canada is considering non-tariff measures that could relate to critical minerals, energy procurement, and other partnerships. Trudeau encouraged Canadians to support domestic industries by buying Canadian products and choosing to vacation within the country rather than traveling to the United States.
Economic Implications
The escalating trade dispute poses significant implications for the economies of both nations. Investors and market analysts are closely monitoring the situation, as increased tariffs can lead to higher costs for businesses and consumers, potential supply chain disruptions, and uncertainty in North American markets.
Trudeau's announcement underscores Canada's stance on fair trade practices and its readiness to respond to protectionist policies. As the situation unfolds, stakeholders from various sectors are urged to stay informed on further developments that may affect economic activities and cross-border relations.
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Trudeau announces 25 percent tariffs in response to Trump order
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