Canadian leaders are preparing a forceful response to what they call a "Trump tax," as President Donald Trump contemplates 25 percent tariffs on imports from Canada. Officials in Ottawa caution that retaliatory measures could send consumer costs soaring and risk long-term damage to both nations' economies.
The Canadian foreign minister asserted on Friday that a "Trump tariffs tax" will be imposed on the United States of America in the event that the next president of the United States raises customs charges on Canadian goods. She also promised a robust response in the event of a trade war.
As part of his economic and international policy goals, which also target Mexico, China, and other trade partners, Donald Trump has stated that he intends to impose tariffs on Canadian goods that are 25 percent more than the current government's levies. Trump will return to the White House the following week.
Foreign Minister Melanie Joly stated that the United States will be initiating a trade war against Canada. She went on to declare that this would be the largest trade war that has occurred between Canada and the United States in the past several decades.
According to what she said during a press conference in Washington, "We are ready to put maximum pressure," she added. She also mentioned that Canada has a series of actions prepared in the event that Trump follows through with his threat, which would have a significant impact on Canadian consumers and jobs.
In the first phase of tariffs, which might be extended, the Canadian government is mulling over the possibility of increasing levies on items imported from the United States. These goods include steel products, ceramics such as toilets and sinks, glassware, and orange juice, according to a source within the government who spoke to AFP.
A reassuring statement was issued by the departing Prime Minister, Justin Trudeau, in which he mentioned that the government will be firm and unambiguous in its support of Canada and the people of Canada, The Raw Story reports.
He continued by stating that the proposed tariffs would put jobs in the United States at danger, would increase prices for consumers in the United States, would put our collective security at risk, and would raise expenses throughout the entire continent.
Based to a scenario presented by Scotiabank, a trade war may result in a decrease in the gross domestic product of Canada by more than five percent, a large increase in the unemployment rate, and an increase in inflation.
