Trade War With U.S. Begins As Canada Implements 25% Retaliatory Tariffs

A full-blown trade war between America and Canada has begun as U.S. President Donald Trump’s 25% tariffs on imported Canadian goods is now in effect.Prime Minister Justin Trudeau says Canada is responding with retaliatory tariffs of 25% on U.S. imports ranging from alcohol to electronics.“Should American tariffs come into effect tonight, Canada will, effective 12:01 a.m. EST tomorrow, respond with 25 per cent tariffs against $155 billion of American goods,” said Trudeau in a written statement. Trudeau added that the “tariffs will remain in place until the U.S. trade action is withdrawn” and non-tariff measures in collaboration with the provinces and territories are on the table.Canada’s retaliatory tariffs are expected to be implemented in two phases, an immediate 25% tariff placed on $30 billion of U.S. imports.A second round of tariffs on a wider list of American goods valued at $125 billion will go into effect 21 days from now, following a public comment period, said Trudeau. Trump has promised additional rounds of tariffs, including 25% on steel and aluminum, as of March 12, and reciprocal tariffs starting early next month.Canada’s premiers are also responding to the U.S. tariffs, with Ontario Premier Doug Ford promising a strong response that could include halting nickel exports and electricity to America.Ford has already ordered that American alcohol be removed from provincially run liquor stores in Ontario, and is canceling provincial government contracts with U.S. companies. The Ontario premier, who won a third majority government last week, said Trump’s tariffs are an “absolute disaster” for both countries.And Canada is not the only country planning retaliatory tariffs on the U.S. China has pledged to impose additional tariffs of up to 15% on U.S. goods starting March 10.