Canada to retaliate against Trump at 25% tariff for US goods

Canada has declared revenge fees against the US, a move marking the start of a trade struggle among neighbouring countries.

Prime Minister Justin Trudeau imposed a 25%-wide “target of 25%, affecting the value of 155 billion Canadian dollars (106.6 billion dollars) of American goods, ranging from beer and wine, to household equipment and sports goods.

The move coincides with US President Donald Trump's 25% tax on Canadian and Mexican imports to the United States and an additional 10% for China for its concerns of illegal immigration and drug trafficking.

Trudeau said he “would not withdraw to the defense of Canadians”, but warned of real consequences for people on both sides of the border.

“We don't want to be here, we didn't ask this”, he said at a press conference late Saturday.

Canadian Prime Minister added that the tariffs for US goods worth 30 billion will take effect Tuesday and 125 billion more in 21 days to give Canadian firms time to adapt.

Trudeau's response targets articles including American beer, wine, bourbon, fruit fruits and juices, vegetables, perfumes, clothing and shoes, as well as household equipment, sports goods and furniture.

Economists have warned US import taxes and response from Canada, as well as Mexico and China, could lead to price hikes in a wide range of products for consumers, the BBC writes.