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Canada Braces for Trump’s Unprecedented Customs Duties: Officials Reveal Start Date Amid Retaliation Warnings

Canada Prepares to Respond to New U.S. Customs Duties

Canada is set to face new customs duties imposed by U.S. President Donald Trump, scheduled to take effect next Tuesday. This move is anticipated to prompt a reciprocal response from the Canadian government. President Trump’s recent actions represent a significant escalation in trade tensions, as he enacted a 25% tariff on nearly all imports from Canada—a historical development that could destabilize economic relations between the two nations.

According to a senior Canadian official involved in discussions regarding Trump’s strategy, the tariffs contain a proposed 10-year period for Canadian energy products. The official reiterated that these measures will commence on Tuesday, remaining in force until evidence suggests that Canada has taken sufficient steps to mitigate the flow of fentanyl into the United States.

In anticipation of these developments, Canada is preparing to implement its own retaliatory tariffs. Reports indicate that Prime Minister Justin Trudeau is expected to announce these countermeasures shortly. During a recent meeting of the Canadian American Relations Council in Toronto, Trudeau emphasized that Canada does not wish to escalate tensions through tariffs; however, he noted that the government is ready to react to any imposed duties.

Trudeau referenced his administration’s efforts to address U.S. concerns, particularly regarding border security. In response to the growing issue of fentanyl trafficking, Canadian authorities have begun deploying helicopters and special forces along the border, ensuring enhanced surveillance and prevention measures.

Liberal party candidate for Prime Minister, Chrystia Freeland, has suggested that Canada’s counter-tariff package could target American products such as Tesla vehicles and alcoholic beverages.

In a press conference at the Oval Office, Trump outlined some specifics of his tariff strategy, indicating that the duties will encompass oil and gas by February 18 and may gradually decrease the oil tax to 10%. However, clarity on the initial tariff rates was not provided. Additional tariffs on steel and aluminum are also included in the plan, with future expansions to copper anticipated over a longer timeframe. Experts warn that a 10% tariff could substantially reduce Canada’s GDP, potentially leading to a painful economic stagnation that may require government intervention for revitalization.

This unfolding situation between the United States and Canada underscores the potential for significant shifts in economic dynamics, warranting close observation by businesses and policymakers in both countries.

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