Canada is preparing for a trade war with the United States in response to Donald Trump's threats to increase tariffs on Canadian products. Canadian Foreign Minister Mélanie Joly said Canada would impose a “Trump tax” if these threats materialize, triggering the biggest trade war between the two countries in decades.
Canada prepares response to Donald Trump's customs measures
During a press conference in Washington, Mélanie Joly stressed that these measures would have a significant impact on consumers and workers on both sides of the border. She said that if Donald Trump imposes 25% customs duties on Canadian products, it would be a serious blow to the Canadian economy, which is heavily dependent on trade with the United States.
Canada has already prepared a series of retaliatory measuresready to be implemented if necessary. These measures would include higher tariffs on certain products imported from the United States, such as steel, ceramics, glassware and Florida orange juice. These retaliations could come into force in the weeks following the implementation of American customs duties, after a consultation period of 15 days to one month.
Canadian Prime Minister Justin Trudeau also reacted firmly, saying that Canada would defend its interests and those of its citizens without ambiguity. He warned that this trade war could jeopardize collective security and increase costs for consumers at a time when they need economic relief.
Repercussions on the Canadian economy
According to a Scotiabank analysis, a trade conflict of this magnitude could result in a drop of more than 5% in Canadian GDP, a significant increase in unemployment and inflation exceeding 4.1%. The economic consequences would therefore be serious for both countries, making this trade war lose-lose.
Canada is therefore preparing to respond strongly to Trump's tariff threats, with retaliatory measures ready to be implemented. This situation could have major economic repercussions, highlighting the importance of finding a diplomatic solution to avoid an escalation of trade tensions.
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