Americans will pay a “Trump customs tax” if the president-elect increases customs duties on Canadian products, triggering “the biggest trade war between the two countries in decades,” the Canadian Minister of Foreign Affairs threatened on Friday.
“We are ready to put maximum pressure because it is a trade war that President Trump would start,” insisted Mélanie Joly during a press conference in Washington. She recalled that such measures would have a strong impact on consumers and workers in both countries.
If Donald Trump imposes 25% customs duties on Canadian products, as he has threatened to do, it would be a terrible blow for the Canadian economy, which has the United States as its primary partner. Hundreds of thousands of jobs are at stake. Canada has “a series of measures already ready” if Donald Trump carries out his threat after taking office on January 20, the minister said, without going into details.
According to a government source, Ottawa is considering imposing higher customs duties on certain products imported from the United States, notably on steel products, ceramics, such as toilets and sinks, glassware and juice. Florida orange. Measures which could come into force in the coming weeks, after 15 days to a month of consultation.
Other products could be affected subsequently. Canada could thus impose retaliatory measures on American imports representing a total value of 150 billion Canadian dollars (100 billion euros), according to Canadian media.
-“If necessary, we will firmly and unambiguously defend Canada and Canadians,” Prime Minister Justin Trudeau said on Friday. This will “jeopardize our collective security and increase costs across the continent at a time when people, frankly, need a respite,” he lamented.
According to a pessimistic scenario from Scotiabank, an American increase in customs duties, followed by a response from Canada on American imports, could cause Canadian GDP to fall by more than 5%, increase unemployment considerably and cause the economy to rise by more than 5%. inflation at more than 4.1%.
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