Megha Bahree
United States President Donald Trump has been true to his threats.
On Tuesday, the Trump administration unleashed 25 percent blanket tariffs on Canadian imports, excluding energy, which was hit with 10 percent.
Trump also slapped a 25 percent tariff on Mexico, and doubled China’s tariffs to 20 percent.
Royal Bank of Canada economists Francis Donald and Cynthia Leach have called this the largest trade shock to Canada in nearly a hundred years.
Vina Nadjibulla, vice president of research and strategy at the Asia Pacific Foundation of Canada, referred to the tariffs as an “existential fight” for Canada.
Whatever the impact, economist all agree that a trade war between the US and Canada has begun.
Canada announced 25 percent tariffs on 30 billion Canadian dollars ($21bn) worth of US imports in retaliation, and has said it will target another 125 billion Canadian dollars ($87bn) in goods in 21 days if needed.
Mexico has promised to retaliate but has held off on any action until Sunday.
China has announced the imposition of tariffs of 10 to 15 percent on certain US imports from March 10, and has also laid out a series of new export restrictions for designated US entities.
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