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Canada vows ‘Trump tax’ on US in response to tariffs: minister

Americans will be hit by a “Trump tariffs tax” if the US president-elect increases customs duties on Canadian products.

Canada's Foreign Minister Melanie Joly, pictured here at a November 14, 2024 meeting, is warning against a trade war with the United States under incoming President Donald Trump
Canada's Foreign Minister Melanie Joly, pictured here at a November 14, 2024 meeting, is warning against a trade war with the United States under incoming President Donald Trump - Copyright AFP/File CRIS BOURONCLE
Canada's Foreign Minister Melanie Joly, pictured here at a November 14, 2024 meeting, is warning against a trade war with the United States under incoming President Donald Trump - Copyright AFP/File CRIS BOURONCLE

Americans will be hit by a “Trump tariffs tax” if the US president-elect increases customs duties on Canadian products, the Canadian foreign minister said Friday, pledging a hard-hitting response in any trade war.

Donald Trump, who returns to the White House next week, has said he plans to slap 25 percent tariffs on Canadian imports as part of his economic and foreign policy plans that also target Mexico, China and other trade partners.

“This would be the biggest trade war between Canada and the US in decades,” Foreign Minister Melanie Joly said. “The Americans would be starting a trade war against us.

“We are ready to put maximum pressure,” she said at a press conference in Washington, adding that Canada has a series of measures prepared if Trump carries out his threat, which would have a major impact on Canadian consumers and jobs.

A government source told AFP that Ottawa is considering higher duties on goods from the United States including steel products, ceramics like toilets and sinks, glassware and orange juice — in a first phase of tariffs that could be extended.

“We will be strong and unequivocal in our defense of Canada and Canadians,” said outgoing Prime Minister Justin Trudeau.

“The proposed tariffs would put American jobs at risk, raise prices for American consumers, put our collective security at risk and raise costs all across the continent.”

One scenario from Scotiabank suggests that a trade war could cause Canadian GDP to fall by more than five percent, increase unemployment significantly and fuel inflation.

AFP
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With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.

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