Canada announces billions in retaliatory tariffs, says it will not back down

Canada announces billions in retaliatory tariffs, says it will not back down

Canada announces billions in retaliatory tariffs, says it will not back down

Canada announced billions of dollars in retaliatory tariffs against the USA on Friday in a tit for tat response to the Trump administration's duties on Canadian steel and aluminum.

Prime Minister Justin Trudeau responded that Canada would reply to the American measures by imposing levies on $16.6-billion of USA imports starting July 1.

The final retaliatory tariff list spells out more than 100 steel products that are being hit with a 25 per cent surtax including bars, rods, and flat-rolled products; 19 aluminum products including doors, nuts and bolts, and scouring pads; and over 70 other USA goods that will have a 10 per cent surtax placed on them.

Foreign Affairs Minister Chrystia Freeland revealed the final list of $16.6-billion worth of retaliatory tariffs on USA products, including steel and aluminum during a stop at a Hamilton steel factory Friday. Some items will be subject to taxes of 10 or 25 percent.

But at the end of May, Trump said that Canada and the European Union would be swept into the tariffs, setting off a series of tit-for-tat tariffs by close USA trading partners.

The source did not say which steel and aluminum firms would be in line for help.

"It is a dollar for dollar response".

She also reiterated the United States measures are "illegal" and America has a trade surplus with Canada on iron and steel.

In May, when the United States said it would not extend exemptions from the tariffs to Canada and Mexico, it said those talks were moving too slowly. And at the end of the day, Ujczo added the Trump administration's overarching objective of the talks has been to stop Canada and Mexico from being the back door to North America for Chinese goods, like steel.

It's not known how much of that money will come to Alberta (our steel exports to the United States are worth about $500 million compared to about $7 billion for all of Canada).

"We will not escalate and we will not back down", Freeland said Friday. "They are prepared for this", said Dan Ujczo, a trade lawyer in Columbus, Ohio.

Of critical importance to my riding and all affected Canadian organizations, is the announcement of up to $2 billion to defend and protect the interests of Canadian workers and businesses in the steel, aluminum and manufacturing industries.

"Any trade action is disruptive on both sides of the border", Freeland said.

"I think that prediction has been borne out and I think all of us anticipate there will be some moments of drama in the future".

Findlay said a bigger concern than the tit-for-tat moves between the US and Canada is the repercussions of Trump's broader movement on trade, which has included tariffs aimed at China and countermeasures by the Chinese government. "It would change the calculus", he said. "We are also concerned about further escalation and potentially wider and deeper impacts on Canadian businesses".

Extending the duration of work-sharing agreements by 38 additional weeks under the Employment Insurance program to help employers retain their skilled workforce and avoid layoffs during challenging times.

The federal support package is similar to the one offered by Ottawa past year in response USA duties on softwood lumber products from Canada.

The ministers reiterated Friday that Canada has taken steps and introduced safeguards to address concerns about diversion and dumping of products into the Canadian market.

Increasing funding to the provinces and territories to increase the capacity of the job and training programs available to workers affected by the USA measures.

For companies, Ottawa is promising up to $1.7 billion worth of financing and services for steel and aluminum industries through the Business Development Bank of Canada and Export Development Canada. The product will now be hit with a 10 per cent duty.

On the campaign trail this week, Trump continued his attacks on Canadian dairy, wheat and duty-free customs allowances for Canadians returning home, saying they were scuffing up brand new shoes in order to sneak them in.

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