Canada-U.S. in a Major Trade War

trade war

CBJ — The gloves are now officially off in what appears to be an escalating trade war between the U.S. and Canada that could result in disastrous consequences.

The U.S. made good on a pledge to slap Canada, Mexico and the European Union with harsh tariffs on steel and aluminum at a rate of 25% and 10%, respectively, effective immediately.

Just hours before the tariffs were imposed by the Trump administration Canada’s Foreign Affairs Minister and lead trade negotiator Chrystia Freeland said that if the U.S. went through with the tariffs it would be a clear sign that the Americans have no intention of moving forward with a new NAFTA agreement.

Canada has already retaliated by promising tariffs on U.S. steel and other products that could be valued at almost $17 billion. Those tariffs would go into effect on July 1.

Prime Minister Justin Trudeau called Trump’s tariffs “totally unacceptable.” He also said it’s “a turning point in the Canada-U.S. relationship.”

Among the additional products originating from the U.S. that may be subject to surtax, pending a 15-day consultation with Canadians for further refinement, are specific types of: coffee, prepared meals, pizza, chocolate, condiments, toiletries, beer kegs, whiskies, various household items, and motorboats.

Canada selected goods that they can easily replace with local or international alternatives, keeping in mind the cost to Canadians.

@CanBizJournal

 

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