Canada’s Retaliatory Tariffs: Full List of U.S. Goods Targeted

### Key Takeaways
– Canada announced retaliatory tariffs on $155 billion U.S. goods in two phases, responding to new 25% U.S. tariffs.
– First phase imposes tariffs on food, household goods, industrial products; second targets autos, agriculture, and industrial exports.
– Measures aim to protect Canadian businesses; further retaliations or non-tariff responses remain possible amidst ongoing trade tensions.

On February 2, 2025, Canada 🇨🇦 announced a bold plan to respond to new U.S. 🇺🇸 tariffs. The United States had decided to impose a 25% tariff on a wide range of Canadian goods, and Prime Minister Justin Trudeau revealed Canada’s answer: retaliatory tariffs targeting $155 billion worth of American goods. The Canadian government presented its response in two phases. These measures reflect the ongoing trade tensions between the neighboring nations and could have major economic consequences for both countries.

### The First Phase: $30 Billion in Tariffs

Starting February 4, 2025, Canada will apply new tariffs on $30 billion worth of U.S. imports. These tariffs are designed to hit multiple sectors across the economy, including agriculture, household goods, and industrial products. Below is a closer look at the items affected during this first wave:

1. **Food and Beverages**: Everyday goods, from dairy products like milk, cheese, and yogurt to fruits such as cherries, peaches, and plums, are included. Items like coffee, tea, spices, and sauces will also see tariffs. For beverages, popular American exports like bourbon and other alcoholic drinks are in the crosshairs.

2. **Household Products**: Commonly used items like furniture, kitchenware, and major appliances are targeted. Light fixtures and glassware will also face the increased duties.

3. **Cosmetics and Clothing**: Perfumes, clothing, footwear, and accessories are among the consumer goods listed under Canada’s retaliatory measures.

4. **Construction Materials and Industrial Inputs**: The new tariffs will also affect products like lumber, plastics, and key metals such as steel and aluminum, materials that are crucial to Canada’s industrial sector.

5. **Recreational and Specialty Items**: Even motorcycles, drones, and sports equipment feature on the tariff list, alongside unexpected items such as jewelry and original artwork.

By imposing such broad-ranging duties, the Canadian government has signaled its intention to address the economic impact felt by Canadian businesses and workers as a result of U.S. tariffs.

### The Second Phase: A Broader Reach Following Public Input

The second phase of Canada’s plan could make an even greater economic impact. These tariffs will apply to $125 billion worth of U.S. goods, but before the final list is enacted, the government is holding a 21-day public comment period. During this time, industries and stakeholders can provide feedback and request changes.

Preliminary reports suggest this second wave will likely target:
– **Automotive Products**: Passenger vehicles, trucks, and electric vehicles are expected to fall under the tariff regime.
– **Agricultural Goods**: This phase could add U.S. beef, pork, and certain fruits and vegetables to the list.
– **Industrial Goods**: Steel, aluminum, and aerospace products are expected to be included.
– **Recreational Products**: Items such as recreational boats may also face the new duties.

Businesses affected by the upcoming phase will have a brief window of time to adjust their supply chains before these measures take effect.

### Relief for Businesses

Acknowledging the burden these tariffs could place, Canada has introduced measures where businesses can seek relief. Companies will be allowed to appeal for exemptions if they can demonstrate:
1. The goods they import from the U.S. are not available from within Canada or elsewhere in the world.
2. Severe and exceptional impacts on the Canadian economy could occur without an exemption.

This approach reflects the government’s goal of minimizing unintended harm to Canadian businesses and workers while maintaining its stand against U.S. policies.

### Why Now? Examining Canada’s Strategy

Canada’s decision to hit back against U.S. tariffs is not just about economics—it is also political. By implementing these measures, the Canadian government aims to protect workers and businesses. According to Prime Minister Trudeau, this approach will be “firm but fair,” emphasizing Canada’s stance against what it considers unjustified actions by the United States.

The government has encouraged Canadians to prioritize local products when shopping as a way to counteract the potential loss of U.S. goods available in their markets. This strategy, officials argue, can help support local businesses while reducing dependence on American imports.

### Broader Economic Implications

The new retaliatory measures could bring serious consequences for the trade relationship between these two closely tied economies. Trade between Canada 🇨🇦 and the U.S. 🇺🇸 plays a central role in job creation, with Canadian exports to the United States supporting 2.3 million Canadian jobs. Similarly, goods exported from the U.S. to Canada account for 1.4 million American jobs.

However, the tariffs are expected to disrupt these well-established trade patterns. A report from the Bank of Canada shows that if both nations maintain mutual 25% tariffs, Canada’s GDP could shrink by 2.4%. This would represent a meaningful setback for the country’s overall economic growth.

Canadian officials, including Foreign Affairs Minister Mélanie Joly, have warned that retaliatory tariffs might not stop with the second phase. A potential third round of measures is still on the table if the U.S. does not remove its duties on Canadian exports. Meanwhile, Canada is also considering “non-tariff” responses, which could include restrictions on critical minerals—resources that play an essential role in industries like technology and manufacturing.

### Tensions to Persist

The conflict between the two nations arises as part of a broader global shift in trade policies. Over the past few years, the rise of protectionism has created challenges for international partnerships. Former U.S. President Donald Trump laid the groundwork for stronger tariffs and trade restrictions during his time in office, authorizing measures under Executive Order section 2(d). This policy allows reactive increases and expansions of tariffs against retaliatory actions taken by other countries—like the ones unfolding now with Canada.

The retaliation, however, has its risks. As VisaVerge.com reports, prolonged trade wars often lead to higher prices for consumers and disruptions in supply chains. Canadian enforcement of these tariffs could impact both American and Canadian companies, adding costs to those involved in cross-border trade. Small businesses that rely on imported goods might be particularly hard-hit.

### Next Steps

For now, businesses on both sides of the border must carefully analyze the lists of items subject to tariffs and adjust their procurement strategies. Importers of U.S. goods into Canada may face immediate challenges to maintain affordable price points, while exporters in the United States will likely feel the sting from losing part of their Canadian market share.

As the February 4 deadline approaches for the first phase, companies will need to make their voices heard during the public comment period to influence the second round. Governments, meanwhile, are expected to engage in negotiations behind the scenes, though no breakthroughs have been announced so far.

### Conclusion

Canada’s retaliatory tariffs bring significant changes to the trade dynamic with the United States, reflecting both economic necessity and political strategy. The targeted industries and wide range of products underline the seriousness of Canada 🇨🇦’s response. For now, this trade tension presents challenges for businesses and consumers on both sides of the border. Only time will tell how the broader economic relationship between these close trade partners evolves. To see the official announcement and tariff lists, visit the Government of Canada’s [official website](https://www.canada.ca).

As this story unfolds, businesses and individuals alike will need to keep a close eye on further developments, as these tariffs could reshape industries and even affect consumer choices in the months ahead.

**Canada strikes back with $155B tariff plan**
The Canadian government unveiled a $155 billion retaliatory tariff list on U.S. imports after Washington imposed 25% tariffs on Canadian goods. The first phase begins February 4, 2025, with $30 billion in tariffs on a wide range of products, followed by a second phase after a 21-day public comment period.

**Why it matters:**
This escalation in trade tensions reflects a significant shift in Canada-U.S. relations, potentially impacting millions of jobs and supply chains across both nations. Canada is signaling its willingness to defend its industries and workers.

**By the numbers:**
– **$155 billion:** Total U.S. imports targeted.
– **$30 billion:** First phase tariffs effective Feb. 4, covering food, beverages, household items, and more.
– **$125 billion:** Second phase tariffs following public feedback.

**The big picture:**
This move is part of a broader trade dispute triggered by U.S. tariffs. The targeted list includes everyday consumer goods like dairy and clothing, as well as industrial products such as steel and lumber.

**What they’re saying:**
Prime Minister Justin Trudeau emphasized the need for a “strong but appropriate” response to protect Canadian businesses and workers. Foreign Affairs Minister Mélanie Joly indicated that more rounds of tariffs could follow.

**Between the lines:**
These measures are designed to send a pointed message: Canada wants the U.S. to reconsider its tariffs. By targeting major consumer and industrial goods, Canada aims to maximize economic pressure.

**State of play:**
The first phase of tariffs goes into effect with no exemptions for goods in transit post-February 4. Relief measures will be available on a case-by-case basis for businesses unable to source inputs domestically or from non-U.S. sources.

**Yes, but:**
The economic impact cuts both ways. While Canada supports 2.3 million Canadian jobs through U.S. trade, a Bank of Canada analysis estimates a 2.4% hit to Canada’s GDP if mutual tariffs persist.

**Economic impact and timing:**
– The Canadian government sees this strategy as a defense against unjustified U.S. tariffs but warns businesses to brace for the ripple effects on supply chains and consumer behavior.
– Phase two tariffs will target vehicles, aerospace products, and additional agricultural goods after public feedback.

**The bottom line:**
Canada’s retaliatory tariffs deepen an already tense trade standoff with the U.S., potentially reshaping cross-border economic dynamics. Both consumers and businesses on either side of the border will likely feel the effects of this tit-for-tat tariff escalation.

### Learn Today
Tariff: A tax imposed by a government on imported or exported goods to regulate trade and generate revenue.
Retaliatory Tariff: A tax imposed on imports in response to similar duties levied by another country, aimed at counteracting economic disadvantages.
Exemption: A formal permission allowing a person, group, or business to not comply with a specific law or regulation.
Protectionism: An economic policy aimed at protecting domestic industries through tariffs, trade restrictions, or quotas.
Supply Chain: The network of entities involved in producing, handling, and distributing goods from production to the final consumer.

### This Article in a Nutshell
> Canada’s bold retaliation to U.S. tariffs targets $155 billion of American goods, from food to industrial materials. Starting February 4, 2025, a stand-off looms between two tightly linked economies. With businesses adjusting strategies and consumers bracing for price hikes, this escalating trade war tests resilience on both sides of the border.
> — By VisaVerge.com

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