Store shelves are beginning to reveal the consequences of trade restrictions between the United States and Canada. The Donald Trump administration’s 25% tariffs have caused Canadian governments to recall American goods, impacting millions of Canadians.
Ontario, the country’s most populous province, has ordered the state-owned LCBO to discontinue sales of American wines, beers, and spirits in its stores. According to Efe, this corporation, which is regarded one of the world’s top importers of alcohol, used to spend $1 billion Canadian dollars every year on drinks imported from the United States.
From now on, Canadians will no longer be able to buy these products in their supermarkets.
British Columbia used a different strategy. It will only be allowed to sell products created in red states, where Trump’s Republicans hold control. Other provinces, such as Quebec, Nova Scotia, and Newfoundland and Labrador, have taken similar steps to remove US items from their inventory.
As of Tuesday, the Canadian federal government confirmed that some US imports would be subject to 25% taxes. According to local media, Washington only imposed 10% of these charges on oil and gas.
Tires, paper, household appliances, and cosmetics are among the most impacted products, with a total value of $30 billion, affecting Canadians’ everyday living expenses directly.
Furthermore, Canada aims to tighten restrictions on $125 billion in US imports as of February 25. According to Canadian officials, the tariffs are intended to put pressure on important areas of the American economy while not worsening the trade spat and its possible impact on Canadians.
Despite discussions about the situation in Mexico, they also stated that no coordinated joint efforts had been made. Canadian Prime Minister Justin Trudeau says he does not want a trade war. But Trump’s actions gave him no choice.
Canada responds with retaliation to Donald Trump’s tariffs
Due to Donald Trump’s proposed tariffs, Canada has chosen to retaliate with specific moves to preserve the economy and keep Canadians’ cash safe. In line with his trade threats, President Donald Trump put a 25% tariff on goods from his immediate neighbors, Canada and Mexico, as well as an additional 10% tariff on imports from China.
The idea was signed into three separate executive orders at Trump’s private residence in Mar-a-Lago, Florida. It will take effect on Tuesday, February 4, at precisely 00:01 Washington time (05:01 GMT).
The allegation in each case has been that the three countries were implicated in the trafficking of fentanyl and other drugs to the United States, “where they endanger the social fabric,” with the governments of Beijing and Mexico being strongly criticized.
Canada and Mexico rejected the three directives, which threatened to increase the percentage of tariffs or product range if the afflicted countries did not take equal retaliatory actions. Instead, they declared their decisions within hours. So Canada was not passive.
Shortly after learning of Trump’s decision, Prime Minister Justin Trudeau announced that his government will counter by levying a 25% tax on the equivalent of $155 billion in commerce with the US. According to the Canadian leader, Canada will begin taxing $30 billion in US imports on Tuesday.
Twenty-one days later, another $121 billion in commerce will be taxed, allowing Canadians, businesses, and supply chains to consider alternative options. Canada sees the decision as a declaration of war on trade.
If tariffs are maintained, researchers predict that Canada might enter a recession in as little as six months. Trump’s action is considered as a torpedo in the waterline of the T-MEC, the free trade agreement that has now been blown apart and has linked the three North American countries since 1994, even if it was predicted in various places.
