The Dow opened in the red by over 100 points to start Monday morning’s trading session, showing the ill effects of more trade concerns–this time, stemming from retaliatory tariffs imposed by Canada.
Canada Prime Minister Justin Trudeau greenlighted new tariffs affecting $12.5 billon worth of U.S. goods on various consumer staples, such as chocolate, ketchup, yogurt, beef, caffeinated roasted coffee, orange juice, maple syrup, salad dressing and soups.
“With a 10 percent tariff on soups and broths and tomato products — representing the core of Campbell’s products that are sold in Canada and made from both U.S. and Canadian ingredients — Campbell estimates the economic impact to our Canadian business to be significant,” said company spokesperson Alexandra Sockett to CNBC. “We are evaluating ways to offset the potential tariff impact and working closely with our customers.”
Canada’s tariffs come in response to U.S. President Donald Trump’s recent tariffs on Canadian steel and aluminum. Canada is the latest company to join in on the fray against the United States after China and the European Union responded with retaliatory tariffs of their own.
China’s latest tariffs planned are designed to take aim at the pork and soybean industry. The European Union most recently implemented a 25 percent tariff on U.S. products, such as motorcycles, boats, whiskey, and peanut butter.
Related: A Quick Look at the New Canada Tariffs on U.S. Products
“They are clearly designed to hit back at the heartland of America, and raise the costs of agricultural farm exports to China that will reduce consumption in China and force them to look for alternatives,” said Robert Holleyman, a former senior trade official in the Obama administration and now president of C&M International, a Washington consulting firm.
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