Unusual Whales

Canada has said it will tariffs the United States $30 billion as retaliation in its first tranche

Unusual Whales -

Canadian Prime Minister Justin Trudeau announced in a Monday evening statement that retaliatory tariffs on U.S. goods would take effect at 12:01 a.m. (0501 GMT) Tuesday in response to new American tariffs.

Earlier in the day, U.S. President Donald Trump confirmed that the United States would move forward with 25% tariffs on Canadian and Mexican goods and a 10% duty on Canadian energy products, effective March 4, following the expiration of a one-month reprieve.

Trudeau said Canada’s retaliatory measures would immediately apply to C$30 billion ($20.8 billion) worth of U.S. imports, with the possibility of additional tariffs in the future. While the total value remained consistent with February’s announcement, he did not specify which products would be affected.

Details of Canada’s Retaliatory Measures

Immediate Tariffs

  • Canada will impose 25% tariffs on C$30 billion worth of U.S. imports, effective immediately.
  • The tariffs will remain in place until the U.S. removes its duties on Canadian goods.
  • Goods already in transit to Canada will not be subject to the new tariffs.
  • The C$30 billion in tariffs is part of a larger retaliatory package targeting C$155 billion in U.S. imports, with an additional C$125 billion set to take effect following a 21-day consultation period.

Products Affected (First Phase)

The initial round of tariffs will apply to 1,256 U.S. products, including:

  • Food and beverages: Orange juice, peanut butter, wine, spirits, beer, coffee.
  • Consumer goods: Appliances, apparel, footwear, cosmetics, motorcycles.
  • Industrial products: Pulp and paper, plastics.

Key categories and their estimated import values:

  • Cosmetics and body care: C$3.5 billion
  • Appliances and household items: C$3.4 billion
  • Pulp and paper products: C$3 billion
  • Plastic products: C$1.8 billion

Second Phase of Retaliation

The Canadian government is consulting with industry leaders and the public to determine additional retaliatory tariffs. Potential targets include:

  • Passenger vehicles and trucks
  • Electric vehicles
  • Steel and aluminum products
  • Fruits and vegetables
  • Aerospace components
  • Beef, pork, and dairy

Potential Non-Tariff Retaliation

Trudeau also signaled that Canada is considering non-tariff measures, which could include restrictions on critical minerals, energy procurement, and other economic partnerships. Canada’s energy minister has indicated that an export tariff on critical minerals is one possible response.

Support for Canadian Businesses and Workers

The federal government will implement measures to help Canadian workers and businesses affected by the tariffs. The finance ministry has also announced a remission process to allow companies to request relief from the duties imposed under Canada’s countermeasures. This process will apply to both immediate and future tariff actions.