Retaliatory Tariffs by Canada Against the US have Been Effected
The retaliatory measures of Canada against Trump’s administration’s new tariffs on Steel and aluminum have been effected. As the country celebrated its national holiday on Sunday, Canada imposed a 25 percent levy on asserted metal products from the US.
Additionally, 10 percent tariffs have been imposed on more than 250 other US goods which include whiskey, orange juice and beer kegs. The tensions between Canada and the US are high in the midst of metal levies and the North American Free Trade Agreement talks.
The tit-for-tat levies are estimated to amount to (£9.5bn) which is a representation of the 2017 value of metal exports from Canada affected by the US measures. Top Canadian officials argue that the list is meant to pile political pressure on the US and compel it to notice the effects of the levies on trade.
The officials have also termed the steel and aluminum levies imposed against Canada, Mexico and the European Union illegal and unjustified. The levies were imposed about a month ago by President Trump’s administration.
Earlier on Friday, Canada announced that it would avail C$2bn to protect the steel and aluminum industry and will also include finances to support the affected businesses. While announcing the funds, Foreign Minister Chrystia Freeland, asserted that, that was the Canadian approach and they would not back down.
The European Union and Mexico have already imposed their retaliatory tariffs on US goods. As such, the EU’s levies on £2.4bn ($3.1bn) of American goods such as motorcycles, orange and bourbon whiskey were effected on June 22. Mexico has also imposed tariffs on American products worth on $3bn and include steel, bourbon and blueberries.
Trump’s administration tariffs have not only elicited international outrage but also prompted complaints against the United States to the World Trade Organization (WTO) and the North American Free Trade (Nafta) dispute panels.
Canada and US relations appear to be already strained following this month’s attacks by President Donald Trump against the Canadian Prime Minister, Justin Trudeau. The Canadian PM had declared that his country would not accept to be pushed around on trade matters by the Americans.
Mr. Trump ordered a national security probe in May to establish whether vehicle imports were a threat to national security to warrant the imposition of tariffs on autos and auto parts. Earlier in the week, Robert Lighthizer, a US Trade Representative, criticized the counter-tariffs imposed by other countries and the EU against the US. He says that the countermeasures are a reflection of the hypocrisy that governs the global trading system.