Canada Introduces 25% Tariffs on American Goods Valued at C$30 Billion
On Sunday, Canada announced a list of U.S. products valued at C$30 billion that will face 25 percent tariffs, marking the initial phase of its response to U.S. President Donald Trump's equivalent tariffs on Canadian imports.
TroibNews 
On Sunday, Canada announced a list of U.S. goods worth C$30 billion that will be subject to a 25 percent tariff as the initial phase of retaliation against U.S. President Donald Trump’s equivalent tariffs on Canadian imports.
Canadian Finance Minister Dominic LeBlanc highlighted that this measure will affect items including orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products.
These tariffs are set to go into effect on February 4, aligning with the start of U.S. tariffs on Canadian goods, as noted in the statement.
Moreover, Canada intends to introduce tariffs on a second tier of U.S. imports valued at C$125 billion. This upcoming list, which will be disclosed in the days ahead, is expected to encompass passenger cars, trucks, buses, steel and aluminum products, certain fruits and vegetables, aerospace goods, beef, pork, and dairy items. A 21-day public consultation period will precede the enactment of tariffs on this second group.
This announcement follows Canadian Prime Minister Justin Trudeau’s commitment to retaliate after Trump declared a 25 percent tariff on a majority of Canadian products and a 10 percent tariff on Canadian energy products commencing February 4.
Trudeau also mentioned that Canada is contemplating further non-tariff trade measures, which could include restrictions on the export of essential minerals and energy products to the U.S., and potentially preventing U.S. firms from participating in Canadian government contract bids.
The Canadian Chamber of Commerce has warned that the introduction of these 25 percent tariffs and comprehensive retaliation could lead to a 2.6 percent decrease in Canada’s real GDP, translating to an estimated cost of C$1,900 per household each year. For the U.S., the GDP might decline by 1.6 percent, resulting in an average loss of $1,300 per household.
Read more:
Retaliation, inflation, disruption: What you need to know about Trump tariffs
Analysis: Are Trump's tariff plans for Canada and Mexico real threats?
James del Carmen for TROIB News
Canadian Finance Minister Dominic LeBlanc highlighted that this measure will affect items including orange juice, peanut butter, wine, coffee, appliances, cosmetics, and paper products.
These tariffs are set to go into effect on February 4, aligning with the start of U.S. tariffs on Canadian goods, as noted in the statement.
Moreover, Canada intends to introduce tariffs on a second tier of U.S. imports valued at C$125 billion. This upcoming list, which will be disclosed in the days ahead, is expected to encompass passenger cars, trucks, buses, steel and aluminum products, certain fruits and vegetables, aerospace goods, beef, pork, and dairy items. A 21-day public consultation period will precede the enactment of tariffs on this second group.
This announcement follows Canadian Prime Minister Justin Trudeau’s commitment to retaliate after Trump declared a 25 percent tariff on a majority of Canadian products and a 10 percent tariff on Canadian energy products commencing February 4.
Trudeau also mentioned that Canada is contemplating further non-tariff trade measures, which could include restrictions on the export of essential minerals and energy products to the U.S., and potentially preventing U.S. firms from participating in Canadian government contract bids.
The Canadian Chamber of Commerce has warned that the introduction of these 25 percent tariffs and comprehensive retaliation could lead to a 2.6 percent decrease in Canada’s real GDP, translating to an estimated cost of C$1,900 per household each year. For the U.S., the GDP might decline by 1.6 percent, resulting in an average loss of $1,300 per household.
Read more:
Retaliation, inflation, disruption: What you need to know about Trump tariffs
Analysis: Are Trump's tariff plans for Canada and Mexico real threats?
James del Carmen for TROIB News
