Canada is turning up the heat! 🔥 On Sunday, the Canadian government unveiled a list of U.S. goods worth C$30 billion that will face a hefty 25% tariff. This is Canada's first move in retaliation against U.S. President Donald Trump's matching tariffs on Canadian imports.
This initial round targets everyday items like orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products. \"We're standing up for Canada's interests,\" said Finance Minister Dominic LeBlanc in a statement.
The tariffs kick in on February 4, right when the U.S. tariffs on Canadian products start biting.
But that's not all! Canada plans to slap tariffs on a second set of U.S. imports valued at C$125 billion. 🚚🍎✈️🚗 This list, coming soon, includes passenger cars, trucks, buses, steel and aluminum products, fruits and veggies, aerospace products, beef, pork, and dairy items.
Before these additional tariffs come into play, there's a 21-day public consultation period. So stay tuned!
This trade tussle escalated after Prime Minister Justin Trudeau vowed retaliation late on Saturday, following Trump's announcement of imposing 25% tariffs on most Canadian products and 10% on Canadian energy products starting February 4.
Trudeau hinted at more measures, possibly including restrictions on exports of critical minerals and energy products to the U.S., and blocking U.S. companies from Canadian government contracts.
Economists are sounding the alarm! 🚨 The Canadian Chamber of Commerce warns that these tit-for-tat tariffs could shrink Canada's GDP by 2.6%, costing households an average of C$1,900 annually. The U.S. wouldn't escape unscathed either, with a projected 1.6% GDP drop and a $1,300 hit to households.
As the trade war heats up, consumers on both sides of the border might feel the pinch. 🛍️💰
Reference(s):
cgtn.com
