EconomyWorld

Canada Retaliates Against U.S. Tariffs with Immediate Countermeasures

Economists Warn Canada Faces Recession Without Tariff Relief

WASHINGTON: In a tense showdown between Canada and the U.S., Prime Minister Justin Trudeau condemned U.S. President Donald Trump’s decision to impose tariffs on Canadian imports, calling it “a very dumb thing to do.” Trudeau, who is set to step down at the end of the week, accused Trump of attempting to ruin the Canadian economy and declared that Canada would immediately retaliate with 25% tariffs on C$30 billion worth of U.S. imports.

Trudeau emphasized that the tariffs imposed by the U.S. were unjustified, stating, “There is absolutely no justification or need whatsoever for these tariffs.” He further pledged that Canada would challenge the U.S. measures at the World Trade Organization and under the U.S.-Mexico-Canada trade agreement. Canada also warned of further retaliatory tariffs on an additional C$125 billion worth of U.S. goods if necessary.

Trump quickly responded by threatening to impose reciprocal tariffs of equal size, escalating the trade dispute between the two nations. The trade war came amid ongoing tensions over issues such as the flow of fentanyl into the U.S. and disagreements over the trade deal.

Trudeau’s relationship with Trump has been increasingly strained, especially after the U.S. president mocked Trudeau and suggested that Canada might become the 51st U.S. state. Despite these tensions, Trudeau asserted that the Canadian government would provide direct support to businesses and workers affected by the U.S. tariffs, with plans to expand employment insurance benefits.

Economists have warned that Canada’s economy, which relies heavily on trade with the U.S., could be pushed into a recession unless the tariffs are lifted soon. Trudeau echoed these concerns, stating that the tariffs would also negatively affect the U.S. due to the intertwined nature of the two economies.

In a show of unity, the premiers of Canada’s provinces discussed ways to support businesses and reduce internal trade barriers. Ontario’s Premier Doug Ford also warned of potential countermeasures, including a 25% surcharge on electricity exports to the U.S. if tariffs continued.

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The dispute has sparked a surge in anti-U.S. sentiment among Canadians, with some sports fans booing U.S. teams and boycotting American products. Trudeau, however, clarified that the protests were aimed at the U.S. policy, not the American people. “We’re not booing you, we’re booing a policy that is designed to hurt us,” he said.

As tensions rise, Canada remains focused on seeking a swift resolution to lift the tariffs and protect its economy.

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