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Canada's response to US tariffs

Canada's response to US tariffs

Canada is planning additional retaliation against the U.S. tariffs on autos and tariffs reciprocal to those imposed by President Donald Trump. These actions are scheduled for April.

Mark Carney, the Canadian Prime Minister, said that he has not yet decided what he will do.

actions Canada might take

, however.

Trump imposed tariffs of 25% on goods that were not compliant with the U.S. Mexico Canada free trade agreement, but deferred a 25% tariff for most Canadian goods by 30 days. He then imposed tariffs

Steel and Aluminum

Imports will be allowed on March 12.

Here are the retaliatory actions that Canada has already taken.

FIRST TRANCE

In response to Trump’s initial duties, Justin Trudeau, the former prime minister of Canada, imposed 25% tariffs ($20.92billion) on March 6, on goods imported from America. The C$30billion was part of a retaliation strategy that targeted C$155billion worth of imports from the U.S. However, the remaining C$125billion was delayed after Trump pushed back broader tariffs. Mark Carney, the Prime Minister who replaced Trudeau in March, has stated that the list of products subject to tariffs will remain the same on April 2, depending on the announcements made by the U.S.

The first round of retaliation is a list of 1256 products, including orange juice, peanutbutter, wine, spirits and beer, appliances, clothing, footwear, motorcycles and cosmetics.

The value of imported products is C$3.5 billion for cosmetics and body products, C$3.4 billion for appliances and household goods, C$3 billion for pulp and paper, and C$1.8 billion in plastics.

Steel and aluminum tariffs will be imposed by Canada on March 13, 2025. The additional C$29,8 billion in imports from the U.S. will receive a 25% tariff. The tariffs are expected to stay in place until U.S. steel and aluminum tariffs against Canada are eliminated.

Tariffs on steel and aluminum include a variety of products, including candles, glues and umbrellas, as well as kitchenware, gold and platinum jewellery, and other items.

ADDITIONAL TARIFFS According to the Canadian government, it will consult with stakeholders and the public regarding a second broad tranche of retaliatory duties. The Canadian government will not announce any new tariffs before Trump announces reciprocal tariffs on April 2. The list could include many products imported from the U.S., including passenger cars and trucks, electric vehicle, fruits and vegetables and aerospace products.

Trudeau said Canada was also considering non-tariff retaliatory actions, which could be related to vital minerals, energy procurement or other partnerships. Carney responded on March 25, when asked if nontariff measures like export controls or export taxation were on the table.

Ontario Premier Doug Ford announced that all U.S. companies would be prohibited from participating in government contracts. Ontario has cancelled its C$100m contract with Elon Musk’s Starlink. Canada has frozen Tesla's rebate payments and barred the electric vehicle maker from participating in future EV rebate programs. Toronto has stopped offering financial incentives to Tesla owners who purchase vehicles as taxis or ride-sharing services because of the trade tensions between the U.S. and Canada earlier this month.

(source: Reuters)