By Promit Mukherjee
Ottawa (Reuters) -Canada will take revenge on the new rates of President Donald Trump with 25% taxes on a series of American import, Prime Minister Justin Trudeau said on Saturday and warned Americans that Trump's actions would have real consequences for them.
Since the relations between the old allies who share the longest country border in the world a new low point, Trudeau told a press conference that he set rates at C $ 155 billion ($ 107 billion) of American goods. Those on C $ 30 billion will take effect on Tuesday, the same day as Trump's rates and tasks on the remaining C $ 125 billion in 21 days, he said.
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Trudeau's announcement only came a few hours after Trump ordered 25% rates on Canadian and Mexican import and 10% on goods from China, which risked a trade war that, according to economists, could slow global growth and revive inflation.
Trump said he would impose a 10% rate on all energy imports from Canada.
The Canadian leader said that rates would include American beer, wine and bourbon, as well as fruit and fruit juices, including orange juice from Trump's home standing Florida. Canada would also focus on goods, including clothing, sports equipment and household appliances.
Trudeau said that in the coming weeks would be difficult for Canadians, but that Americans would also suffer from Trump's actions.
“Rates against Canada will endanger your jobs, making it possible to close the American car assembly factories and other production facilities,” said Trudeau, who addressed American citizens during a press conference in Ottawa.
“They will increase the costs for you, including food in the supermarket and gas at the pump.”
Canada is considering non-tariff measures, possibly with regard to critical minerals, energy supply and other partnerships, Trudeau said.
According to Canadian government data, the limit between 9,000 km (5,600 miles) in the US and Canada has $ 2.5 billion in trade per day, especially in energy and production from 2023.
In 2023, Canada exported almost C $ 550 billion in goods and services to the US, or more than three -quarters of its total export. Energy was good for 30% and production contributed around 15% to export south of the border.
Export to the US accounts for around 17.8% of the Canadian gross domestic product and more than 2.4 million jobs in Canada.
The rates are hitting Canada because it deals with a political crisis and a leadership race within the Liberal Party of Trudeau.
With low approval assessments, Trudeau has said that after nine years he will resign as soon as a new party leader has been chosen. The conservatives of the opposition could win the next elections by a thumping majority, according to recent opinion polls.
Flanked by his Ministers of Foreign Affairs and Finance, a gloomy Trudeau remembered the years of bilateral relations between the two countries.
“From the beaches of Normandy to the mountains of the Korean peninsula, from the fields of Flanders to the streets of Kandahar, we fought and died next to you during your darkest hours,” he said. “We have built up the most successful economic, military and security partnership that the world has ever seen.”
Trudeau encouraged Canadians to buy Canadian products and vacation at home instead of in the US
“We didn't ask for this, but we won't come back,” he said.
(Reporting by Promit Mukherjee; Processing by Caroline Stauffer, Christopher Cushing and William Mallard)
