Canada has announced it will impose tariffs on U.S. goods starting Tuesday, escalating a trade dispute with the United States. Prime Minister Justin Trudeau made the statement on Monday, revealing that the tariffs are a direct response to U.S. President Donald Trump's proposed tariffs on Canadian goods. The initial phase of Canada's retaliatory measures will see a 25% tariff applied to C$30 billion worth of U.S. imports.
The Canadian government plans to extend these tariffs further. In 21 days, the remaining C$125 billion worth of U.S. goods will also face a 25% tariff. This brings the total value of affected imports to C$155 billion, equivalent to approximately $107 billion. These measures highlight the growing tensions between the two neighboring countries over trade policies.
The U.S. administration has proposed tariffs on Canadian goods, which are yet to be implemented. In response, Canada has taken a firm stand against these potential trade barriers by imposing its own set of tariffs on American products. Prime Minister Trudeau emphasized that these tariffs would persist until the U.S. retracts its proposed trade actions.
"Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures." – Justin Trudeau
The announcement marks a significant development in Canada-U.S. trade relations, leaving businesses and policymakers on both sides to assess the potential impact on their economies. Industries affected by these tariffs may experience increased costs and disrupted supply chains, prompting concerns about broader economic repercussions.