Canada has announced retaliatory tariffs against the US, in a move that marks the beginning of a trade war between the neighbouring countries.<\/p>\n
Prime Minister Justin Trudeau set out \u201cfar-reaching\u201d tariffs of 25%, affecting 155bn Canadian dollars\u2019 worth ($106.6bn; \u00a386bn) of American goods ranging from beer and wine to household appliances and sporting goods.<\/p>\n
The move matches US President Donald Trump\u2019s 25% levy on Canadian and Mexican imports to the US \u2013 and an additional 10% on China \u2013 over his concerns about illegal immigration and drug trafficking.<\/p>\n
Trudeau said he would \u201cnot back down in standing up for Canadians\u201d, but warned of real consequences for people on both sides of the border.<\/p>\n
\u201cWe don\u2019t want to be here, we didn\u2019t ask for this,\u201d he said at a news conference late on Saturday.<\/p>\n
The Canadian prime minister added that tariffs on 30bn-worth US goods would come into force on Tuesday and another 125bn in 21 days to give Canadian firms time to adjust.<\/p>\n
Trudeau\u2019s response targets items including American beer, wine, bourbon, fruits and fruit juices, vegetables, perfumes, clothing and shoes, as well as household appliances, sporting goods and furniture.<\/p>\n
Lumber and plastics will also face levies and non-tariff measures are also being considered are related to critical minerals and procurement.<\/p>\n
Economists have warned the introduction of import taxes by the US, and the response from Canada, as well as Mexico and China, could lead to prices rising on a wide range of products for consumers.<\/p>\n
A tariff is a domestic tax levied on goods as they enter a country, proportional to the value of the import.<\/p>\n
The prospect of higher tariffs being introduced on imports to the US has been concerning many world leaders because it will make it more expensive for companies to sell goods in the world\u2019s largest economy.<\/p>\n
Christopher Sands, director of the Wilson Center\u2019s Canada Institute, told the BBC that tit-for-tat tariffs between the US and Canada were \u201cmutually assured destruction\u201d and they would impact people\u2019s lives very quickly.<\/p>\n
He said there would be no adjustment time as US Treasury Secretary Scott Bessent had recently proposed: \u201cJust a massive hit that\u2019s going to make a lot of people\u2019s lives a lot tougher, very quickly.\u201d<\/p>\n
But the taxes are a central part of Trump\u2019s economic vision. He sees them as a way of growing the US economy, protecting jobs and raising tax revenue \u2013 and in this case, pushing for policy action.<\/p>\n
Canada, Mexico and the US have deeply integrated economies, with an estimated $2bn (\u00a31.6bn) worth of manufactured goods crossing the borders daily.<\/p>\n
Canada is America\u2019s largest foreign supplier of crude oil. According to the most recent official trade figures, 61% of oil imported into the US between January and November last year came from Canada.<\/p>\n
While 25% has been slapped on Canadian goods imported to the US, its energy faces a lower 10% tariff.<\/p>\n
The White House said on Saturday the implementation of tariffs was \u201cnecessary to hold China, Mexico, and Canada accountable for their promises to halt the flood of poisonous drugs into the United States\u201d.<\/p>\n
But Trudeau pushed back on the suggestion the shared border posed a security concern, saying less than 1% of fentanyl going into the US comes from Canada.<\/p>\n
He added less than 1% of illegal migrants entered the US through the border and that tariffs were \u201cnot the best way we can actually work together to save lives\u201d<\/p>\n
Trump has indicated he is ready to escalate the duties further if the countries retaliate to his tariffs, as Canada has done.<\/p>\n
Prior to the tariffs announcement, Canada has pledged more than $1bn to boost security at its shared border with the US.<\/p>\n
Trudeau said on Saturday had not spoken to Trump since he had taken office.<\/p>\n
Mark Carney, the former head of Canada\u2019s and England\u2019s central banks, told BBC Newsnight on Friday that the tariffs would hit economic growth and drive up inflation.<\/p>\n
\u201cThey\u2019re going to damage the US\u2019s reputation around the world,\u201d said Carney, who is also in the running to replace Trudeau as leader of Canada\u2019s Liberal Party.<\/p>\n
\u00a0<\/p>\n
The post Canada imposes 25% tariffs in trade war with US<\/a> first appeared on KBC<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Canada has announced retaliatory tariffs against the US, in a move that marks the beginning of a trade war between the neighbouring countries. Prime Minister Justin Trudeau set out \u201cfar-reaching\u201d tariffs of 25%, affecting 155bn Canadian dollars\u2019 worth ($106.6bn; \u00a386bn) of American goods ranging from beer and wine to household appliances and sporting goods. The […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-109330","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/109330","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/comments?post=109330"}],"version-history":[{"count":0,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/109330\/revisions"}],"wp:attachment":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/media?parent=109330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/categories?post=109330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/tags?post=109330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}