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After bracing for weeks for a trade war with the new US administration led by President Donald Trump, Canada has escaped a 25% tariff as Trump announced to implement it on February 1, while Canada’s outgoing Prime Minister Justin Trudeau has said that his government is ready to respond to all scenarios.
The new US president has pledged an import duty of 25% on Canada and Mexico, 60% on Chinese goods and 10% on global imports.
“Donald Trump’s approach does bring in uncertainty,” Canada’s outgoing PM Trudeau said, adding that he speaks “regularly” with Trump, Reuters reported.
“Canada provides many of the necessary inputs the American economy is going to need in order to grow and boom,” Trudeau added, suggesting that whatever prosperity Trump has promised for America will require Canadian resources to fuel it.
However, Ontario’s premier Doug Ford believes that a trade war between US and Canada is 100% coming. In an interview with AP, Ford said Trump has “declared an economic war on Canada”.
Ford, who claimed that there will be a dollar-to-dollar retaliation of American goods that enter Canada if the tariffs are imposed by the US, said that as soon as the tariffs are imposed by Donald Trump, he will instruct the Ontario’s liquor control board to remove all American made alcohol from the market.
“We are the largest purchaser of alcohol in the world. And I’m going to encourage all the premiers to do the exact same,” Ford said, reported AP.
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