Canada imposes $30 billion in retaliatory tariffs on U.S. imports
Kumar Shivam | Mar 13, 2025, 02:18 IST
( Image credit : IANS )
In response to U.S. tariffs on steel and aluminum, Canada has announced retaliatory tariffs totaling nearly $30 billion. The move includes a 25% tariff on various U.S. imports, from steel to consumer goods. The escalation comes amidst growing trade tensions between the two countries, with the European Union also taking similar actions. Global leaders have voiced concerns over the potential economic impact, while the U.S. remains resolute in its approach.
Canada's response to U.S. tariffs
In retaliation to the United States' new tariffs on steel and aluminum, Canada has implemented its own measures, imposing a 25% tariff on American imports worth approximately $30 billion. This includes items such as steel, electronics, and sporting goods. The Canadian government has stated it will adhere to a "dollar-by-dollar" response, mirroring the value of the U.S. tariffs on Canadian products. The move escalates the already strained trade relations between the two countries.
Global reactions and escalation
Following Canada's announcement, the European Union also introduced retaliatory tariffs on U.S. imports, including motorcycles and whiskey. The EU's response totals around $28 billion, further amplifying the global trade conflict. Other nations are also evaluating their responses, with some, like Mexico, holding off on announcing retaliatory tariffs until a later date. Global leaders have expressed concern about the long-term economic consequences of the ongoing trade disputes.
U.S. defends its trade policy
Despite international criticism, U.S. President Donald Trump remains firm in his stance, defending the tariffs as essential for rebuilding the American economy. He has emphasized that the tariffs will lead to long-term economic growth, particularly in U.S. manufacturing. Trump’s economic team, including National Economic Council head Kevin Hassett, insists the policies are already proving effective in job creation and strengthening the domestic economy, despite short-term market fluctuations.
Uncertainty in the U.S. economic outlook
The uncertainty surrounding the trade wars has led to concerns within the Federal Reserve regarding the economic outlook. Fed Chair Jerome Powell acknowledged the challenges posed by the tariffs but stated that, for now, the economy remains stable. However, there is widespread concern that the trade tensions could disrupt investment and spending, potentially slowing growth or even leading to a recession if the conflict intensifies further.
In retaliation to the United States' new tariffs on steel and aluminum, Canada has implemented its own measures, imposing a 25% tariff on American imports worth approximately $30 billion. This includes items such as steel, electronics, and sporting goods. The Canadian government has stated it will adhere to a "dollar-by-dollar" response, mirroring the value of the U.S. tariffs on Canadian products. The move escalates the already strained trade relations between the two countries.
Global reactions and escalation
Following Canada's announcement, the European Union also introduced retaliatory tariffs on U.S. imports, including motorcycles and whiskey. The EU's response totals around $28 billion, further amplifying the global trade conflict. Other nations are also evaluating their responses, with some, like Mexico, holding off on announcing retaliatory tariffs until a later date. Global leaders have expressed concern about the long-term economic consequences of the ongoing trade disputes.
U.S. defends its trade policy
Despite international criticism, U.S. President Donald Trump remains firm in his stance, defending the tariffs as essential for rebuilding the American economy. He has emphasized that the tariffs will lead to long-term economic growth, particularly in U.S. manufacturing. Trump’s economic team, including National Economic Council head Kevin Hassett, insists the policies are already proving effective in job creation and strengthening the domestic economy, despite short-term market fluctuations.
Uncertainty in the U.S. economic outlook
The uncertainty surrounding the trade wars has led to concerns within the Federal Reserve regarding the economic outlook. Fed Chair Jerome Powell acknowledged the challenges posed by the tariffs but stated that, for now, the economy remains stable. However, there is widespread concern that the trade tensions could disrupt investment and spending, potentially slowing growth or even leading to a recession if the conflict intensifies further.