25% for 25%: Canada imposes retaliatory tariffs on US imports
What's the story
In a tit-for-tat move, Canadian Prime Minister Justin Trudeau has announced a 25% tariff on CAD $155 billion ($106 billion) worth of US imports.
He also urged people of his country to buy domestic products and consider vacationing domestically.
The move comes as a direct response to US President Donald Trump's recent imposition of hefty tariffs on goods from Canada, Mexico, and China.
Tariff
Duties on US alcohol and fruit
Canada will impose immediate tariffs on CAD $30 billion worth of US alcohol and fruit from Tuesday. This coincides with the implementation of new US tariffs.
In his announcement, Trudeau directly addressed American consumers, saying, "It will have real consequences for you, the American people."
He slammed the White House's actions as divisive and warned of potential "dark times" ahead.
US measures
Trump's tariffs and justification
Trump's tariffs comprise a 25% levy on goods from Mexico and Canada and a 10% tariff on all imports from China.
However, Canadian energy imports such as oil, natural gas, and electricity are subject to a lowered 10% tariff.
The President justified these measures by declaring an economic emergency under the International Emergency Economic Powers Act (IEEPA), citing threats from illegal aliens and drugs as reasons for the tariffs.
Economic strategy
Trump's commitment to protecting Americans
Trump reiterated his commitment to protecting Americans and delivering on campaign promises to reduce illegal immigration and drug trafficking.
He claimed that depending more on tariff revenue would be good for the US economy, citing historical economic conditions during President William McKinley in the 1890s.
This move marks a major escalation in trade tensions between the two nations, which could affect global economic dynamics.