Canada Targets $155 Billion Worth Of U.S. Goods For Retaliatory Tariffs

Canada’s federal government in Ottawa has announced plans to impose retaliatory tariffs on $155 billion worth of U.S. imports as the country prepares for a trade war with America. Specifically, the government of Prime Minister Justin Trudeau is placing 25% tariffs on U.S. goods ranging from orange juice to bourbon as they enter Canada. At a news conference over the weekend, Trudeau said that tariffs will be placed on $30 billion worth of American imports on Feb. 4, and the remaining $125 billion will come into effect within 21 days.The retaliatory tariffs from Ottawa come in response to U.S. President Donald Trump declaring a trade war on Canada, imposing 25% tariffs on virtually all goods from Canada and a lower 10% tariff on Canadian crude oil and natural gas. Trudeau said that the Canadian duties being imposed on American imports are countermeasures meant to hit back at the U.S. economy.Ultimately the tariffs will be passed onto consumers in both the U.S. and Canada, making it more expensive to buy items ranging from smartphones to blue jeans to gas at the pumps.U.S. products that Canada is hitting immediately in its first round of tariffs on Feb. 4 include orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper.The second, $125 billion round of tariffs will include passenger vehicles and trucks, steel and aluminum products, fruits and vegetables, beef, pork, dairy, recreational vehicles, and boats. Trudeau and Canada’s premiers have also talked about placing export duties on Canadian energy products sent to the U.S. and even curtailing exports of oil and natural gas to the U.S.Trump has claimed that he is imposing the tariffs in retaliation for illegal immigrants and drugs such as fentanyl flowing into the U.S. from Canada.The Canadian government has argued that most people entering the U.S. from Canada are tourists with passports and that the amount of fentanyl flowing into the U.S. is minimal at best.Trudeau and Trump are reportedly scheduled to have a phone conversation and discuss the looming trade war later today (Feb. 3).