Synopsis
On March 5, Canada announced a detailed tariff strategy in response to the trade war initiated by US President Trump. Prime Minister Trudeau emphasized Canada's commitment to standing firm against US tariffs and outlined the initial and future countermeasures that include tariffs on various imported goods.Key Takeaways
- Canada imposes tariffs on $21 billion worth of US goods.
- Additional tariffs on $89 billion worth of imports planned.
- Canada is challenging US actions at the World Trade Organization.
- Trudeau criticizes Trump's motives for the trade war.
- Government to consider exceptional relief for affected businesses.
Ottawa, March 5 (NationPress) The federal government of Canada has unveiled a comprehensive tariff package following Prime Minister Justin Trudeau's declaration that Canada will not retreat in the battle against the trade conflict instigated by US President Donald Trump.
As stated in a release from the Finance Ministry on Tuesday, the initial phase of Canada's retaliation involves imposing tariffs on goods worth 30 billion Canadian dollars (approximately $21 billion) imported from the US, effective at 12:01 a.m. on March 4.
The targeted items include products like orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and specific pulp and paper goods, according to the Xinhua news agency.
Further countermeasures on imports valued at 125 billion Canadian dollars (about $89 billion) from the US are set to be considered from a list open for a 21-day comment period. This list features products such as electric vehicles, fruits and vegetables, beef, pork, dairy, electronics, steel, aluminum, trucks, and buses, the release noted.
The government is also implementing measures to lessen the repercussions of these countermeasures on Canadian workers and businesses by establishing a remission process to handle requests for exceptional tariff relief, the statement elaborated.
All possibilities remain under consideration as the government evaluates additional actions, including non-tariff strategies, the statement indicated.
During his address to the nation earlier on Tuesday, Trudeau mentioned that Canada would challenge the US's illegal moves by filing dispute resolution claims at the World Trade Organization and through the Canada-US-Mexico Agreement, the free trade arrangement in North America renegotiated by Trump during his previous term.
The counter tariffs will stay in effect until the US retracts its tariffs, and not a moment sooner, Trudeau emphasized.
In a press conference on Tuesday, the Canadian PM asserted that there is no justification for the trade war between Canada and the US and that Canada will contest Trump's actions.
"Today, the US instigated a trade war against Canada, their closest partner and ally, their dearest friend," declared the Canadian PM, as he reiterated Canada's resolve to retaliate.
The Canadian government responded with an initial 30 billion Canadian dollars ($21 billion) in tariffs on US imports, with a commitment to impose an additional 125 billion Canadian dollars worth in 21 days.
Trudeau asserted that American families, along with Trump, will soon experience the adverse effects of the tariffs. Speaking directly to the camera, Trudeau stated, "This is a very unwise decision to make."
He accused Trump of aiming to "witness a total collapse of the Canadian economy," suggesting that this is the reason behind Trump's aggressive stance.
"Because that would facilitate the annexation of Canada, is his secondary thought," said Trudeau, adding, "That is never going to transpire."
He labeled the President's justification for the tariffs, citing fentanyl crossing the border from Canada to the US, as "unjustified and a false pretext."
Canadian officials had made a month-long diplomatic effort to avert tariffs and have addressed Trump's border concerns.
Canada appointed a new "fentanyl czar" and classified Mexican cartels as terrorist organizations.
On February 1, Trump enacted an executive order imposing a 25 percent tariff on goods imported from Mexico and Canada, with a 10 percent increase specifically targeting Canadian energy products.
On February 3, Trump announced that additional tariffs on goods from Mexico and Canada would be postponed for one month, allowing for extended negotiations.
Trump confirmed on Monday that 25 percent tariffs on Mexico and Canada would take effect on Tuesday, March 4.
