Canada punches back against Trump with major tariffs of its own as trade war set to begin on Tuesday
Published On Feb 2, 2025, 10:14 AM
Canada has responded to the 25% tariffs imposed by the U.S. on its imports with a retaliatory package of similar tariffs worth about $21 billion on a wide array of American goods, with expectations of additional tariffs amounting to $86 billion soon. Canadian Prime Minister Justin Trudeau emphasized that this response is necessary and highlighted that various products, including alcohol, clothing, and household goods, would be affected. The economic consequences of these tariffs are projected to be significant for both countries, with experts predicting GDP shrinks as a result.
Stock Forecasts
XLP
Negative
The imposition of tariffs will likely hurt U.S. companies reliant on exports to Canada, particularly in the consumer goods sectors affected by the tariffs.
PG
Negative
Stocks in the consumer goods sector, especially those producing items that will face Canadian tariffs, may see negative impacts on their revenue and market sentiment.
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