Canada's retaliatory tariffs on US goods to start Tuesday

Canada will impose 25 per cent tariffs on C$155 billion (AED 392 billion) worth of US goods from Tuesday if US President Donald Trump's administration follows through with its proposed tariffs on Canadian goods, Prime Minister Justin Trudeau said on Monday.

US President Donald Trump earlier said the US would proceed with 25 per cent tariffs on Canadian and Mexican goods and 10 per cent duties on Canadian energy products from March 4 after a one-month reprieve expired.

Trudeau said in the statement tariffs on C$30 billion (AED 76.39 billion) of US imports would take effect immediately, and more tariffs could follow. The retaliation amount was the same as in the February announcement, though he did not give details on which goods would be impacted.

The C$30 billion (AED 76.39 billion) is a part of an overall retaliatory measure targeting C$155 billion (AED 392 billion) worth of goods imports from the US, with the remaining C$125 billion (AED 316 billion) coming into force after a 21-day consultation period.

The first tranche of retaliation includes a list of 1,256 products such as orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper.

The cost of imports associated with some of the major products are cosmetics and body care worth C$3.5 billion (AED 8.86 billion), appliances and other household items worth C$3.4 billion (AED 8.85 billion), pulp and paper products of C$3 billion (AED 7.59 billion), plastic products worth C$1.8, billion (AED 4.56 billion) among others.

The government will be consulting the public and stakeholders for a second tranche of retaliatory tariffs which will include a wide range of products imported from the US such as passenger vehicles and trucks, electric vehicles, steel and aluminum products, fruits and vegetables, aerospace products, beef, pork, and dairy.

Trudeau has also said Canada is considering non-tariff retaliatory measures potentially relating to critical minerals, energy procurement and other partnerships. His energy minister has said an export tariff on critical minerals is one option.

The government will also take steps to mitigate the impact of its tariff countermeasures on Canadian workers and businesses, the finance ministry has said.

It will establish a remission process to consider requests for relief from the tariffs imposed as part of Canada's immediate response, as well as any future tariff actions, it said.