Canada braces for a prolonged trade war with the USA
Canadian Prime Minister Justin Trudeau warns that the trade war with the USA will be prolonged. He encourages Canadians to buy local products.
During Thursday's press conference, Canadian Prime Minister Justin Trudeau emphasized that the trade war with the USA will continue. He stated that Canadians should support local products to minimize the negative effects of American tariffs. Trudeau noted that the government's priority is to limit the impact of the 25% tariffs on Canada's economy.
For a month, at the request of manufacturers, tariffs on car parts and cars are suspended. Trudeau commented: "Because of the tariffs imposed by the U.S., Americans will pay more for groceries, gas, and cars, and potentially lose thousands of jobs. Tariffs will disrupt an incredibly successful trading relationship. They will violate the very trade agreement that was negotiated by President Trump in his last term."
Canada responds to the USA
Canada has already challenged the American tariffs at the World Trade Organization (WTO) and has introduced its own 25% tariffs on American exports. Initially, they apply to goods worth 30 billion Canadian dollars, and after 21 days, they will include additional goods worth 125 billion Canadian dollars.
Canadian provinces and territories are introducing additional restrictions, such as excluding American companies from public tenders.
Canadian Foreign Affairs Minister Mélanie Joly indicated that Canada might use its position by halting the export of critical goods, such as uranium, on which American nuclear power plants depend. Trudeau emphasized that Canadian retaliatory tariffs will only be lifted once the USA rescinds their tariffs.
During a conversation with U.S. President Donald Trump, Trudeau described the discussion as "colourful" and "constructive," although, according to "The Wall Street Journal," it was riddled with expletives. Public broadcaster CBC reported that it was Trump who used unparliamentary language, particularly in the context of dairy products.
Canada uses a quota system for dairy, poultry, and eggs, which was an issue in the free trade agreement negotiations with the USA. Despite small concessions to the USA, Canada still aims to balance supply and demand and secure income for its farmers. Discussions on this matter will continue.
