The U.S. has enacted tariffs on goods from Canada and Mexico, initiating a trade war between the nations. In retaliation, Canada has imposed its own tariffs on U.S. products. Both sides are engaging in discussions to address the ongoing tensions and future tariffs.
The United States has implemented significant tariffs on imports from Canada and Mexico, signaling the escalation of a trade conflict between these long-standing allies. Effective immediately, a 25 percent tariff applies to all goods flowing into the U.S. from both countries, while Canadian energy exports face a 10 percent levy.
In retaliation, Canada has announced a 25 percent tariff on $30 billion worth of U.S. products, with plans for additional tariffs on another $125 billion in American goods to follow in three weeks, as confirmed by Prime Minister Justin Trudeau.
Prime Minister Trudeau stated, “Canada will not let this unjustified decision go unanswered,” emphasizing that Canadian tariffs will persist until the U.S. retracts its trade measures. He also mentioned proactive discussions with provincial and territorial authorities regarding further non-tariff strategies should the tariffs continue.
On February 1, President Donald Trump authorized these tariffs as a response to issues related to illegal immigration and the opioid crisis. Although the tariffs were previously delayed for 30 days due to newly established border security commitments, they were enacted after the deadline lapsed.
Canada is preparing for more potential tariffs from the Trump administration, which may include an additional 25 percent on all steel and aluminum imports starting March 12. Furthermore, on April 2, Trump intends to impose global reciprocal tariffs affecting all trading partners, including Canada.
The imposition of tariffs by the United States and the subsequent retaliation from Canada marks a significant escalation in trade tensions. This trade conflict could have far-reaching economic implications for both nations as they navigate through these newly established trade barriers. The ongoing dialogue between the countries will be crucial in determining the outcome of this trade dispute.
Original Source: globalnews.ca
