In a sharp response to U.S. tariffs, Canada has unveiled a list of American products worth C$30 billion that will face a 25 percent tariff. This move marks the first phase of Canada’s retaliation against U.S. President Donald Trump's recent imposition of matching tariffs on Canadian imports.
Canadian Finance Minister Dominic LeBlanc announced that the retaliatory tariffs will target a diverse array of goods, 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 start date of the U.S. tariffs on Canadian goods.
Beyond the initial list, Canada plans to impose tariffs on a second group of U.S. imports valued at C$125 billion. Scheduled to be released in the coming days, this second tranche will include passenger cars, trucks, buses, steel and aluminum products, select fruits and vegetables, aerospace products, as well as beef, pork, and dairy items. Before these tariffs take effect, there will be a 21-day public consultation period to gather input from stakeholders.
The escalation follows Canadian Prime Minister Justin Trudeau’s vow of retaliation after Trump announced a 25 percent tariff on most Canadian products and a 10 percent tariff on Canadian energy products starting February 4. Trudeau indicated that Canada is considering additional non-tariff measures, which may involve restricting exports of critical minerals and energy products to the United States and preventing U.S. companies from bidding on Canadian government contracts.
Economic experts warn of significant impacts from these trade tensions. The Canadian Chamber of Commerce has cautioned that the imposition of a 25 percent tariff and full retaliation could lead to a 2.6 percent decline in Canada's real GDP. This downturn may cost an average of 1,900 Canadian dollars per household annually. In the United States, a 1.6 percent GDP reduction could translate to an average cost of $1,300 per household.
Reference(s):
cgtn.com
