Customs duties ignite the largest trade war between America and Canada

The Canadian Foreign Minister vowed that Americans would pay “Trump’s tariffs” if the president-elect increases tariffs on Canadian goods.
She explained that this would cause “decades of damage,” commenting: “We are ready to exert as much pressure as possible because it is a trade war that President Trump will start.”

Trade war between Trump and Canada

She reminded that similar measures would have a strong impact on consumers and workers in both countries.
If he imposes 25 percent customs duties on Canadian goods, as he previously threatened, this will constitute a major blow to the Canadian economy, of which the United States is its first partner.
Jolie explained that Canada has “a series of measures ready in advance” in the event that Trump carries out his threat after taking office on January 20, but without going into details.

Goods imported from the United States

A government source said that Ottawa is specifically considering imposing higher customs duties on some goods imported from the United States, especially steel products, ceramics, glassware and orange juice from Florida.
These measures may come into effect in the coming weeks.
In a second stage, Canada may expand the scope of its procedures to include additional American imports with a total value of approximately 150 billion Canadian dollars (one hundred billion euros), according to Canadian media.
“If necessary, we will firmly and unequivocally defend Canada and Canadians,” Prime Minister Justin Trudeau said Friday.

Common damages

He warned that this “will harm our common security and will increase the cost to the entire continent at a time when people really need a break.”
In a pessimistic scenario presented by Scotia Bank, US tariffs would be raised and Canada would reciprocate US imports.
Therefore, it causes a decline in Canada’s gross domestic product by more than five percent, with a significant increase in unemployment and a rise in inflation to more than 4.1 percent.
Canadian Prime Minister Justin Trudeau also confirmed in previous statements that his country is ready to respond by imposing counter-tariffs on the United States if President-elect Donald Trump carries out his threat to start a trade war in North America.