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Trump’s tariffs could lead to ‘tit for tat’ relations with Canada
Canada’s government will not let its country be pushed around! It is not only ready to defend itself against tariff threats from US President Donald
Trump, but it is also prepared to strike back if necessary. However, Bloomberg suggests that this revenge plan may not scare the Republican leader all that much. Even so, Canada seems determined to hit back with large-scale tariffs of its own.
Kirsten Hillman, Canada’s ambassador to the US, emphasizes that US president-elect Donald Trump's tariff plans will lead to “tit for tat” retaliation from Canada. According to her, tariffs and rejecting Canadian products "would be costly to the US economy." American businesses may end up turning to other suppliers, such as Russia and China—a scenario Hillman believes will be costly and undesirable for all sides involved.
Bloomberg also noted that Canada is drafting plans to impose substantial tariffs on US goods. This move could follow Trump’s threat to slap a 25% tariff on Canadian products.
However, the picture is not as bleak as some analysts make it seem. A recent forecast suggests that fears of a full-blown trade war between Canada and the US might be overblown. After all, America might swallow its northern neighbor economically without much effort.
Previously, Canada vowed to hurt the American economy if the White House administration imposed a 25% tariff on Canadian goods. Canada’s retaliation plans include targeting American exports like toilets, sinks, and orange juice.
Published 17 January 2025
© InstaFintech Group
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© InstaFintech Group
