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0 Canada has announced sweeping retaliatory tariffs against the United States, escalating trade tensions between the two neighboring countries.
Prime Minister Justin Trudeau outlined a 25% levy on $155 billion CAD ($106.6 billion USD; £86 billion GBP) worth of American goods, targeting a wide range of imports, including beer, wine, household appliances, and sporting goods.
The move mirrors US President Donald Trump’s 25% tariff on Canadian and Mexican imports, along with an additional 10% duty on Chinese goods, which he justified as necessary to combat illegal immigration and drug trafficking.
“We don’t want to be here, we didn’t ask for this,” Trudeau stated during a press conference on Saturday, emphasizing that Canada would “not back down in standing up for Canadians.” The first phase of $30 billion in tariffs will take effect on Tuesday, with the remaining $125 billion to follow within 21 days, allowing businesses time to adjust.
Impact and Global Concerns
Trudeau’s response includes tariffs on American beer, wine, bourbon, fruits, fruit juices, vegetables, clothing, shoes, household appliances, and furniture, as well as lumber and plastics. Additionally, Canada is considering non-tariff measures related to critical minerals and government procurement.
Economists warn that rising tariffs could lead to higher consumer prices globally. Christopher Sands, Director of the Wilson Center’s Canada Institute, described the tariff battle as “mutually assured destruction,” stating it would immediately impact consumers and businesses.
The US, Canada, and Mexico have deeply integrated economies, with approximately $2 billion in goods crossing their borders daily. Despite Canada being America’s largest supplier of crude oil, US tariffs on Canadian energy remain at a lower 10% rate.
Security and Political Fallout
The White House defended its tariffs, claiming they were “necessary to hold China, Mexico, and Canada accountable” for controlling the flow of illegal drugs into the US. However, Trudeau dismissed these concerns, noting that less than 1% of fentanyl entering the US originates from Canada.
Former Bank of Canada and Bank of England Governor Mark Carney warned that the tariffs would slow economic growth and drive up inflation, adding that they could damage the US’s reputation globally.
President Trump has indicated he is ready to escalate duties further if Canada or other affected nations retaliate, fueling fears of a prolonged trade conflict.
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Source: BBC
The post Canada hits back with 25% tariffs as trade war with US escalates first appeared on 3News.
