Canada Announces $155 Billion Tariff Package in Response to Unjustified U.S. Tariffs

TDT | Manama
Email : editor@newsofbahrain.com

In a bold move to protect its economy and citizens, the Government of Canada has unveiled plans to impose 25% tariffs on $155 billion worth of U.S. goods. This response comes in retaliation to the U.S. government's imposition of unjustified tariffs on Canadian exports.

The announcement was made by the Honourable Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs, and the Honourable Mélanie Joly, Minister of Foreign Affairs. The Canadian government asserts that these countermeasures are necessary to defend the interests of Canadian consumers, workers, and businesses against the unfair trade practices of the United States.

Initial Phase of Tariff Implementation
Starting February 4, 2025, the first phase of Canada's tariff response will target $30 billion worth of U.S. imports. A range of products will be impacted, including orange juice, peanut butter, wine, beer, appliances, clothing, motorcycles, and pulp and paper. A complete list of affected items will be shared in the coming days.

Further Measures in the Pipeline
In addition to the first wave of tariffs, the Canadian government is preparing to impose tariffs on another $125 billion worth of U.S. goods. This list will include passenger vehicles (including electric models), steel and aluminum, fruits and vegetables, aerospace products, and more. Before these additional tariffs take effect, the public will have 21 days to provide feedback.

Minister LeBlanc emphasized that all options remain on the table should the U.S. continue its tariff policies. The government is committed to ensuring Canada's economic interests are safeguarded.

Repercussions for U.S. Economy
The Canadian government has warned that these tariffs will have a significant negative impact on the U.S. economy. Disruptions are expected to occur across U.S. auto manufacturing, oil refineries, and consumer goods prices, particularly in sectors like automotive, groceries, and gasoline.

Support for Canadian Businesses and Workers
To mitigate the potential impact on Canadian businesses and workers, the government is introducing a remission process that will allow for exceptions to the tariffs in certain cases. More details on this process will be provided in the near future.

Minister Joly added, “Canada will not stand idly by as the U.S., our closest and most important trading partner, applies harmful and unjustified tariffs against us. With these countermeasures, we are defending Canada’s interests and doing what is best for Canadians and our economy.”

Trade Relationship with the U.S.
The trade relationship between Canada and the U.S. is a vital part of both countries' economies. Canada remains the largest customer for U.S. goods and services, purchasing more than China, Japan, France, and the U.K. combined. The U.S. also maintains a trade surplus in manufacturing with Canada, totaling $33 billion in 2023.

Canada is the primary export market for 36 U.S. states and ranks among the top three markets for 46 others. On average, over US$2.5 billion in goods and services crosses the Canada-U.S. border daily.

Canada’s Comprehensive Response
The Canadian government is also closely monitoring the situation and will continue to work with provincial, territorial, and industry leaders to navigate the fallout from these tariffs. Efforts will also be made to strengthen Canada's competitive position in the global market, with a focus on improving productivity and attracting investment.

“We are committed to ensuring that workers and businesses who are affected by U.S. tariffs receive the support they need,” said Minister LeBlanc. “We will continue to work tirelessly to get these tariffs removed and to protect Canadian jobs and industries.”

Ongoing Economic Support for Affected Workers and Businesses
Canada’s economic support programs, including financial assistance through Crown corporations and the Employment Insurance program, will be available to help those impacted by the tariffs. The government is actively monitoring the situation and is prepared to introduce additional measures if necessary.

For more updates on the tariff measures and government support programs, Canadians are encouraged to stay informed through official channels.

Background
On December 17, 2024, the Government of Canada also unveiled its Border Plan, a $1.3 billion investment aimed at enhancing border security and improving Canada's immigration system. This comprehensive plan addresses issues such as fentanyl trade and illegal crossings, bolstering Canada's ability to protect its citizens.