On Saturday night, Canada announced retaliatory tariffs on U.S. imports after U.S. President Donald Trump imposed a 25 percent tariff on most Canadian products.
Canadian Prime Minister Justin Trudeau announced that Canada will impose a 25 percent tariff on U.S. goods worth 30 billion Canadian dollars starting Tuesday. Additionally, tariffs will be applied to another 125 billion Canadian dollars in products within 21 days.
Among the first affected products are beer, wine, liquors, vegetables, clothing, footwear, perfumes, appliances, furniture, and sporting goods. Trudeau also mentioned that other non-tariff trade measures are being considered.
The Premier of the Canadian province of British Columbia, David Eby, expressed that Trump's tariffs betray the historical relationship between the two countries. He has ordered local liquor stores to stop purchasing U.S. liquor, as well as instructed the provincial government not to acquire U.S. products.
The Canadian Chamber of Commerce warned that with the tariffs and retaliation, Canada's GDP could decrease by 2.6 percent, costing an average of 1,900 Canadian dollars per household annually. Meanwhile, the United States would see a 1.6 percent drop in GDP and an average cost of 1,300 U.S. dollars per household.
The tariff order imposed on Canada is 25 percent on all imports and 10 percent on energy products. On Saturday, the Trump Administration also imposed tariffs on imports from Canada, Mexico, and China.
