Canada is drawing up plans to impose tariffs on American products if Donald Trump follows through on his promise to impose a 25% tariff on Canadian goods. Bloomberg writes about this, citing sources.
There is a list that contains almost all American products that Canada exports from the United States. But it will not be made public until Trump’s exact intentions become clear.
One option being considered is to impose tariffs on US strategic goods, including oil, uranium and potash. At the same time, Canada hopes to avoid a trade war with the United States altogether.
According to calculations by Bank of Nova Scotia economists, if the United States introduces 25%, Canada’s GDP will fall by 3.8%. And if Canada opts for a “full payback,” that is, imposes taxes on all US goods, then these costs will amount to 5.6% over several years.
Trump, after winning the election, promised to impose tariffs on goods from China, Mexico and Canada on the first day of his presidency.
All goods imported from Mexico and Canada will allegedly be subject to a 25% tariff, and goods from China will be subject to an additional 10% tariff. Trump calls it a necessary step to stop the flow of migrants and drug trafficking across the border.
The Chinese Embassy has already noted that no one will benefit from “China’s trade war from the United States.” And Canada promised to discuss this issue in more detail with the new US Presidential Administration.
Source: Racurs
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