Canada announces retaliatory tariffs
(MENAFN) Canadian Prime Minister Justin Trudeau has announced retaliatory tariffs of 25% on $155 billion worth of American goods, following U.S. President Donald Trump’s decision to impose similar trade restrictions on Canadian imports. The initial wave, covering $30 billion in U.S. goods, will take effect on Tuesday, with additional measures set to follow in 21 days to allow businesses to adjust.
Trudeau emphasized that the tariffs will impact everyday items, such as alcohol, fruits, vegetables, clothing, and shoes, and warned that Canada is also exploring non-tariff measures, including restrictions on critical minerals, energy procurement, and trade partnerships.
Trump’s tariffs on nearly all Canadian goods were announced in response to concerns over illegal drug trafficking and immigration, with the White House citing Canada’s role in the U.S. fentanyl crisis. Despite Canada’s introduction of a $1.3 billion plan to strengthen border surveillance and combat drug trafficking, Trump indicated that no actions could prevent the new tariffs from going into effect.
Economists caution that the escalating trade dispute could lead to higher consumer prices and economic disruptions in both countries.
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