Canada Strikes Back at Trump: $12 Billion of Tariffs Come Into Force

Canada Strikes Back at Trump: $12 Billion of Tariffs Come Into Force

Canada Strikes Back at Trump: $12 Billion of Tariffs Come Into Force

Tensions are relatively high between the US and Canada as of late, however, after the Trump administration imposed tariffs on Canadian steel and aluminum, prompting Mr. Trudeau's government to introduce retaliatory tariffs scheduled to take effect on July 1.

The Canadian tariffs will come into effect on July 1 and largely target US steel and aluminum products, but also foodstuffs such as coffee, ketchup and whiskies, according to a list by the Department of Finance.

Earlier today, Foreign Affairs Minister Chrystia Freeland joined Innovation Minister Navdeep Bains and Employment and Labour Minister Patty Hajdu announced a number of initiatives and programs to help keep the jobs in Canada that have a value of up to $2 billion.

"It is a reciprocal action". The company did not comment on how many jobs would be shifted away from the USA, but said that it would take between nine and 18 months to move production away from Wisconsin.

The Canadian tariffs are created to hit products like steel and bourbon from states like OH and Kentucky that heavily favored Trump in the presidential election.

According to the federal government, there are 23,000 Canadians employed in the steel industry, and 10,500 Canadian aluminum workers.

Whiskey is another item on the list, which comes from Tennessee and Kentucky, the latter being the home state of Republican Senate leader Mitch McConnell.

Rising trade tension between Canada and the United States and a pushback from U.S. businesses on further tariffs, including on imported autos, pressured a White House that has championed an "America First" protectionist stance since Mr Trump took office in January 2017.

Trump has justified the steel and aluminium tariffs by saying imported metals threaten U.S. national security - a justification that countries rarely use because it can be so easily abused.

"But tariffs that we impose hurt us, too".

The two countries, with Mexico, are also locked in negotiations over the North American Free Trade Agreement.

Senior officials from Canada are lobbying the Big Three U.S. vehicle makers to stave off the punitive measures and say they are considering all options, including providing financial aid.

The Trump administration is studying whether to put tariffs on Canadian autos, which economists say would help plunge the economy into a recession.

Freeland also said they are prepared if Trump escalates the trade war.

Freeland said an "intensive phase" of NAFTA renegotiations will resume quickly after Sunday's elections in Mexico. "I think all of us, at this point, fully anticipate there will be some moments of drama in the future".

Last week, U.S. Commerce Secretary Wilbur Ross expressed concerns about the world's overproduction and overcapacity of steel, saying the U.S. tariffs against Canada and other allies are created to force them into action.

The announcement from Canada came the same week as European tariffs kicked in.

Bains, the economic development minister, said the support is aimed at helping firms adjust to the hard circumstances while enabling them to continue to innovate along the way.

Auto giant General Motors warned imposing auto tariffs "risks undermining GM's competitiveness against foreign auto producers", driving up the cost of imported components and reducing sales.

She is also expected to reveal the details of the federal government's plan to support Canada's tariff-targeted steel and aluminum industries.

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