Canada will impose retaliatory tariffs on U.S. goods, Prime Minister Justin Trudeau announced on Monday. This move comes in response to potential tariffs proposed by the U.S. administration under President Donald Trump on Canadian exports. Starting Tuesday, Canada will implement a 25% tariff on C$30 billion worth of U.S. goods, with additional tariffs affecting C$125 billion worth of products set to follow in 21 days.
The Canadian government has taken this step as a countermeasure to safeguard its economic interests in light of the U.S.'s trade policies. Though the U.S. proposed tariffs on Canadian goods remain unconfirmed, Canada's planned tariffs will impact a broad range of U.S. exports valued at C$155 billion.
Prime Minister Trudeau emphasized that Canada's actions are directly linked to the U.S. administration's approach to trade with Canada. He stated:
"Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures."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 initial phase of tariffs will begin immediately, marking a significant escalation in trade tensions between the two countries. The remaining tariffs, targeting a larger portion of U.S. exports, are poised to commence within three weeks, providing a window for further negotiations.
Canada's decision reflects its commitment to protecting domestic industries from what it perceives as unfair trade practices by the United States. The government maintains that these measures are essential to defend its economic sovereignty and ensure fair competition.
The tariffs are likely to have widespread implications for various sectors across North America. Industries on both sides of the border are preparing for potential disruptions as they assess the impact of these measures on supply chains and pricing.
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