Canada Strikes Back: Legal Action Looms as U.S. Tariffs Spark Trade War

Canada plans to use international legal means to combat what they call the unjustified and illegal 25% tariffs that the U.S. has placed on Canadian products thus launching a potential trade conflict. The U.S. president implemented broad Canadian import tariffs because he wanted to stop fentanyl and unauthorized immigration.

Prime Minister Justin Trudeau decided to counter U.S. trade actions by instituting 25% extra duties on 1,256 U.S. items that total C$30 billion including orange juice peanut butter and cosmetics. The unidentified Canadian senior official stated the government will bring trade disputes to international agreements to counter Trump’s violation of trade obligations.

Health and energy products like petroleum resources are exempt from the U.S. tariff regulations which take effect on February 4. The Canadian counter-tariffs begin their implementation on Tuesday and Canada plans a third wave of dues against vehicles and aerospace products and steel products in three weeks starting this week.

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This trade conflict has created economic worries that Canada is planning to use as relief tools for damaged businesses. The global economy now prepares for potential economic damage from a trade conflict that could restrain growth while bringing back inflation.

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