Canada Launches Tariff Measures in Response to the United States Amounting to CAD 29.8 Billion

Canada will implement retaliatory tariffs totaling CAD 29.8 billion on the United States this Thursday due to the tariffs on steel and aluminum set by U.S. President Donald Trump, reported Canadian Finance Minister Dominic LeBlanc.

Trump’s increase of tariffs on steel and aluminum imports began on Wednesday, ending previous exemptions, tax-free quotas, and product exceptions. This comes as the president intensifies his push to reform global trade regulations in favor of the United States. Canada, being the primary foreign supplier of steel and aluminum to the U.S., will be impacted by these retaliatory measures, which will include CAD 12.6 billion worth of steel products and CAD 3 billion in aluminum products, along with other U.S. goods valued at CAD 14.2 billion, making a total of CAD 29.8 billion. Some of the products that will face these countermeasures include computers, sporting equipment, and cast iron items, LeBlanc explained during a press conference. This escalation in the trade war between the United States and Canada comes just as Prime Minister Justin Trudeau is about to hand over his position to his successor, Mark Carney, who won the contest for the Liberal leadership last Sunday. Carney mentioned that he could not engage in talks with Trump until he officially takes office as Prime Minister. Trump, for his part, reiterated on social media his wish for Canada to “become our 51st pleasant state.”

Commenting on this situation, it is crucial to consider the impact that trade wars can have on the economies of the countries involved. While these tariffs may aim to protect domestic industries, they can also destabilize trade, cause price increases for consumers, and limit economic growth. Therefore, it is essential for leaders to find diplomatic avenues to prevent the escalation of such tensions.