Trump Threatens More Tariffs as Canada Enacts Retaliatory Measures

The trade war between Canada and the United States became a reality Tuesday as Prime Minister Justin Trudeau announced retaliatory tariffs in response to President Donald Trump’s 25 per cent tariff on Canadian goods.

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Prime Minister Trudeau meets with President Trump in London. December 3, 2019./ Photo by Adam Scotti (PMO)

At a press conference, Trudeau detailed the plan to go ahead with the previously planned response of 25 per cent tariff on $155 billion worth of U.S. products, with immediate duties on $30 billion worth of goods, including orange juice, peanut butter, beer, coffee, appliances, apparel, and motorcycles. The remaining $125 billion will face tariffs in 21 days.

 

Trudeau argued there was “absolutely no justification” for the U.S. tariffs, emphasizing that Canada had fulfilled commitments to bolster border security, including a $1.3 billion investment and the appointment of a fentanyl czar.

 

Trump responded on Truth Social, warning that U.S. reciprocal tariffs would increase proportionally to Canada’s retaliatory measures, stating “Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount.”

The retaliatory tariffs by the US, set to take effect on April 2, would apply to all of America’s trading partners, including Canada.

 

Canada is also preparing for further U.S. tariffs. A 25 per cent duty on all steel and aluminum imports, including those from Canada, is scheduled to take effect on March 12.

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