WHAT YOU NEED TO KNOW:
- In response to the Trump administration’s announcement last month on imposing taxes of 25% and 10% on steel and aluminum on Canada, the EU and other nations, Canada has retaliated with counter-taxes amounting to billions of dollars.
- Canada already released the final list of U.S. goods that will be hit with tariffs which will begin on July 1.
- Calling the imposition of tariffs “regrettable”, Foreign Minister Chrystia Freeland said they will not escalate the dispute but they won’t back down either.
The Canadian government has already released their list of U.S. goods that will be hit with tariffs starting July 1. Some items will be subject to 25% and 10%. The list targeted everything- ketchup, orange juice, beer, manicure products, whiskey, yogurt, boats, jams and so many more.
“As he has said in past conversations and in public, the Prime Minister conveyed that Canada has had no choice but to announce reciprocal countermeasures to the steel and aluminum tariffs that the United States imposed on June 1, 2018,” according to a statement from Trudeau’s office.
Trudeau also gave an update to Mexican President Enrique Pena Nieto regarding the country’s response.
Foreign Minister Chrystia Freeland said they will not escalate the dispute but they are certainly not backing down either, calling the imposition of taxes “regrettable.” They are prepared if the trade war escalates.
“It is absolutely imperative that common sense should prevail,” she said. “Having said that our approach from day one of the NAFTA negotiations has been to hope for the best but prepare for the worst.”
Trump said that imported metals threatened the United State’s national security. He further added that he might impose tariffs on imported cars, trucks and auto parts. Although this statement particularly worried the Canadians because the auto industry is vital to Canada’s economy, Freeland said that that would be “absurd” because of the North American auto industry is highly integrated.
In addition, Dan Ujczo, a trade lawyer in Columbus, Ohio, finds it doubtful that Trump will announce auto tariff because that would be a “red line” before the midterm election for the U.S. Congress.
Source: MSN News