CHICAGO (AP):
Canada struck back at the United States on yesterday with retaliatory tariffs on about US$20 billion worth of American goods, including steel, dairy products, appliances and farm equipment, as the trade war between the once-friendly neighbours escalated sharply.
Canada’s retaliation came after the Trump administration imposed 50 per cent tariffs over the weekend on Canadian goods, following the collapse of trade negotiations.
Canadian Prime Minister Mark Carney accused Washington of trying to subordinate Canada and said US demands during the failed talks showed that Americans wanted to “destroy our major industries”.
Starting September 8, Canada’s government says it will impose steeper import taxes on goods ranging from fish and cheese to smartphones and steel imported from the United States.
Canada said it was focusing its retaliation on products “most affected by US tariffs”. The levies will be set at 15 per cent, 25 per cent or 50 per cent – rates that the government said would match US tariffs on goods targeted in Washington’s latest round, as well as products covered by previously imposed sectoral duties.
Yesterday’s announcement came just days after the Trump administration’s 50 per cent tariffs on roughly US$20 billion of Canadian goods, ranging from honey to hockey sticks, took effect. That represents just five per cent of the value of goods Canada sent to the US last year, but the punishing rate comes on top of a series of tariffs Trump has imposed on the country during his second term in office.
More threats of escalation have piled up in the meantime. As a result, businesses – and, by extension, households – on both sides of the border could soon feel the strain of even higher prices.
The Trump administration already outlined its own lengthy list of more than 550 Canadian products that are now subject to 50 per cent tariffs. That list includes natural honey, vegetable seeds and flower bulbs; alcoholic beverages such as beer and vermouth; ice skates and other sports accessories; various household goods; and smartphones.
Trump imposed the tariffs by reaching back to a long-dormant Great Depression-era law. Section 338 of the Tariff Act of 1930, which has never been used before, authorises the president to impose import taxes of up to 50 per cent on goods from countries that have discriminated against US businesses.
Trump claimed that Canada discriminated against US autos, alcohol and dairy products, particularly following the implementation of his earlier import taxes last year. It’s worth noting that the list of Canadian goods facing the latest levy is far more diverse.
US items Canada now targeting include:
• Live and frozen fish, crustaceans, oysters and mussels
• Cheese and curd products
• Natural honey, molasses and baking mixtures
• Perfume, makeup and hair preparations
• Carpets and other floor coverings
• Toilet paper, facial tissues and envelopes
• T-shirts, jackets, coats and gloves
• Various metal products made of steel or aluminum, including wire, rods, pipes and foil
• Stoves, ranges, refrigerators and other household appliances
• Smartphones and video game consoles
• Motorcycles and trailers
• Fishing rods and exercise equipment.
The new tariffs on these products will carry rates of 15 per cent, 25 per cent or 50 per cent. Canada’s tariffs on many American products would double from 25 per cent to 50 per cent, with the largest share of the new measures affecting steel and aluminum.
