Canada Hitting Back: $29.8 Billion in Reciprocal Tariffs Imposed on U.S. Imports

OTTAWA — In a bold move, Canada has imposed reciprocal tariffs worth $29.8 billion on U.S. imports, targeting key industries such as steel and aluminum.

The new tariffs, which take effect immediately, are aimed at responding to the Trump administration's decision to impose duties on Canadian goods. The Canadian government claims that these tariffs are an unfair trade practice that will harm Canadian businesses and workers.

Canada's Retaliation

"We have taken all necessary steps to protect our industry and our workers," said Canadian Prime Minister-designate Justin Trudeau in a statement. "These tariffs are a response to the U.S. government's decision to impose unfair trade practices on Canada."

The new tariffs will apply to over 200 products, including steel and aluminum, automotive parts, and machinery. The Canadian government estimates that the tariffs will result in losses of up to $1 billion for Canadian businesses per year.

U.S. Response

"Canada's actions are a clear example of economic coercion," said U.S. Secretary of State Marco Rubio in a statement. "We urge Canada to reconsider its decision and work with us to find a mutually beneficial solution."

U.S. Trade Representative Robert Lighthizer released a statement saying that the tariffs were "unfair" and would harm Canadian consumers. However, he also warned that further trade tensions could have serious consequences for both countries.

Criticism from Both Sides

"This is just another example of Trump's antics," said Alex Kessel, a former senior diplomat at Global Affairs Canada. "He seems to be more interested in scoring points than finding real solutions."

Meanwhile, Canadian Foreign Affairs Minister Melanie Joly criticized the U.S. government for its handling of the trade dispute. "We will not back down or give in to this coercion," she said. "Canada has made it very clear that we will stand up for our interests and protect our workers."

Diplomatic Efforts

Despite the escalating tensions, both countries have expressed a willingness to negotiate a trade deal. Trudeau announced that Canada would be hosting a meeting of G7 foreign ministers in Quebec City next month to discuss trade and security issues.

"We're committed to finding a solution that works for everyone," said Trudeau. "But we will not compromise on our core values or interests."

Reaction from Industry

The imposition of tariffs has sent shockwaves through Canadian industries, with many businesses expressing concern about the impact on their operations.

"This is a very difficult day for Canada," said Paul Raffault, CEO of ArcelorMittal Dofasco. "We will do everything we can to mitigate the effects of these tariffs and protect our jobs."

Conclusion

The imposition of reciprocal tariffs by Canada marks a significant escalation in the trade dispute between the two countries. While both sides have expressed a willingness to negotiate, the situation remains volatile and uncertain.

In this ongoing trade war, it's clear that neither side is willing to back down. The question now is what will happen next?