Canada to retaliate against Trump with 25% tariff

Canada has announced a ventilative tariff against the US, in a step that marks the beginning of a trade war between neighboring countries.

Prime Minister Justin Trudeau established a “far -reaching” tariff of 25%, ranging from beer and wine to home appliances and sports items to 155bn Canadian dollars from beer and wine to US goods ($ 106.6bn; £ 86bn; ) Affects.

The move, with US President Donald Trump in the US with 25% levy on Canadian and Mexican imports – and additional 10% on China – illegal immigration and drug trafficking match their concerns about their concerns.

Trudeau stated that he would “return to stand for Canadian people”, but warned of real results for people on both sides of the border.

He said at a news conference on Saturday, “We don’t want to be here, we did not ask for it.”

The Canadian Prime Minister said that tariffs on 30BN-VORT American goods would be applicable on Tuesday and another 125BN would be given time to accommodate Canadian firms in 21 days.

Trudeau’s reaction targets objects including American beer, alcohol, borbon, fruits and fruit juices, vegetables, perfumes and shoes, as well as home appliances, sports items and furniture.

Lumber and plastic will also face levy and non-tariff measures are also being considered, related to significant minerals and purchases.

Economists have warned of the introduction of import taxes by economists, and reactions from Canada, as well as Mexico and China, may increase prices on a wide range of products for consumers.

A tariff is a domestic tax that is imposed on goods because they enter a country, proportional to the value of imports.

The possibility of high tariffs being offered on imports in the US is about many world leaders as it will make it more expensive for companies to sell goods in the world’s largest economy.

Christopher Sands, director of the Canada Institute of the Wilson Center, told the BBC that the tight-for-tat tariff between the US and Canada was “mutually assurance destruction” and they would affect people’s lives very quickly.

He said that there would be no adjustment time because American Treasury Secretary Scott Besent recently proposed: “Just a large -scale hit that is going to make the lives of many people very difficult, very soon.”

But tax is a central part of Trump’s economic vision. He sees them as a way to enhance the American economy, protect jobs and increase tax revenue – and in this case, the policy insists on action.

Canada, Mexico and the US have depth integrated economies, crossing the boundaries of goods manufactured with an estimated $ 2BN (£ 1.6bn).

Canada is America’s largest foreign supplier of crude oil. According to the most recent official trade data, 61% of oil imported into the US came from Canada between January and November last year.

While 25% of the Canadian goods imported into the US have been slapped, its energy faces less 10% tariffs.

The White House said on Saturday that the implementation of the tariff was “it was necessary to catch China, Mexico and Canada for its promises to prevent the flood of poisonous drugs in the United States”.

But Trudeau pushed back on the suggestion that the shared border made security concern, stating that less than 1% of the phenomenon going to the US comes from Canada.

He said that less than 1% illegal migrants entered the US through the border and tariff was “the best way we could actually work together to save life”

Trump has indicated that he is ready to carry forward duties if the countries retaliate for their tariffs, as Canada has done.

Prior to the announcement of the tariff, Canada has promised more than $ 1bn to promote security on its shared border with the US.

Trudeau said that Trump was not talked to on Saturday as he assumed the post.

Mark Carney, a former head of the central banks of Canada and England, told BBC Newsnight on Friday that tariffs would collide with economic growth and increase inflation.

“They are going to harm America’s reputation worldwide,” Carney said, who is running to replace Trudeau as the leader of the Liberal Party of Canada.