It’s feared that hefty U.S. tariffs to be imposed this Tuesday on goods imported from America’s three largest trading partners — Canada, Mexico and China — could upend industries from autos to consumer goods to energy.
After threatening tariffs for weeks, U.S. President Donald Trump announced on Saturday that they’ll come into effect, with a levy of 25 per cent on Canadian and Mexican imports, and an additional 10 per cent tax on Chinese goods. Canadian energy faces a 10 per cent tariff.
To counter the U.S. tariffs, Canada will start by slapping 25 per cent tariffs on $30 billion worth of American goods coming into Canada as of Tuesday. The tariffs will then be applied to another $125 billion worth of American imports in three weeks’ time.
- On today’s episode, Cross Country Checkup is asking: What questions do you have about tariffs and how they’ll hit your pocketbook? Fill out this form and you could appear on the show or have your comment read on air.
Some Canadian industries have been quick to react to the trade war.
Here’s how tariffs that Trump says will be imposed on Tuesday and Canadian retaliatory measures starting the same day may have an impact.
Cost of living
“Trump’s tariff hammer will come down hard on Canada’s economy,” the Bank of Montreal said on Sunday. “If the announced tariffs remain in place for one year, the economy would face the risk of a modest recession.”
The bank forecasts reduced demand for Canadian goods in the United States…
