Janice R. Andrews
Canada has declared plans to introduce a “Trump tariffs tax” on U.S. imports if President-elect Donald Trump enacts his proposed 25% tariffs on Canadian goods. Foreign Minister Mélanie Joly, speaking in Washington, labeled the move as a potential trade war and affirmed Canada’s readiness to retaliate.
“This could become the most significant trade conflict between Canada and the U.S. in decades,” Joly stated, highlighting measures in place to defend Canada’s economy and jobs against the tariffs.
The proposed Canadian response includes higher duties on U.S. products such as steel, ceramics, glassware, and orange juice. These actions aim to pressure the U.S. while mitigating harm to Canadian consumers.
Outgoing Prime Minister Justin Trudeau also criticized the tariffs, warning they would threaten jobs, increase costs for American consumers, and harm economic and security ties across North America.
Economic forecasts paint a bleak picture if the trade dispute escalates. Scotiabank projects a potential 5% drop in Canada’s GDP, higher unemployment, and rising inflation.
With tensions mounting, both nations face the risk of severe economic consequences, underscoring the importance of finding a diplomatic resolution to avoid a prolonged trade war.
