TORONTO – Canada announced $ 10 billion in retaliatory tariffs against the US on Friday in response to Trump's commitment to Canadian steel and aluminum] Prime Minister Justin Trudeau's government has approved the final list of items to be targeted from 1 July. Some items are subject to a 10 or 25 percent tax.
"We will not escalate and we will not give in," said Canadian Foreign Minister Chrystia Freeland.
Taxes on items such as ketchup, lawn mowers, and motor boats amount to $ 12.6 billion.
Perfect interaction, "Freeland said." It's a dollar-for-dollar response. "
Freeland said they had no choice and called the tariffs unfortunate.
Many of the US products were due For example, Canada imports $ 3 million worth of yogurt per year from the US, and most of it comes from a factory in Wisconsin, home state of house speaker Paul Ryan Another product on the list is Whiskey, which comes from Tennessee and Kentucky, the latter being the state of origin of Republican Senate leader Mitch McConnell.
Freeland also said that they were willing to accept US President Donald Trump escalates the trade war
"It is absolutely necessary that common sense prevail," she said, "after we said that our approach of The first day of the NAFTA negotiations was to hope for the best, but to be prepared for the worst. "
Trump declared the steel and aluminum tariffs saying that imported metals threatened the national security of the United States. a justification that countries rarely use because it is so easily abused. He also threatens to impose a different national security tariff on imported cars, trucks and car parts. This threat could be a bargaining chip to resume talks on the North American Free Trade Agreement.
Freeland said there are no grounds for further US tariffs in response to Canada's actions.
Canadians are particularly worried about car fares is crucial to Canada's economy. Freeland said such tariffs would be "absurd" because the North American auto industry is highly integrated and parts made in Canada often go to cars made in the US and then sold back to Canadians. "Every trade action is disruptive on both sides of the border," said Freeland.
Freeland said an "intensive phase" of NAFTA renegotiation will resume after the Sunday's election in Mexico.
"I do not believe we" I see every reaction from the Trump administration. You are prepared for it, "said Dan Ujczo, a commercial lawyer in Columbus, Ohio." Obviously, the Canadian retribution is a drop in the ocean compared to the retaliatory measures that we will see from China and elsewhere. "
Ujczo doubts That Trump will announce the car fares, because this would be a "red line for the US" Congress "before the interim election.
The US Department of Commerce holds hearings on car fares at the end of July, and will then publish an investigative report on whether they threaten national security.
"I do not think the congress is now likely to be engaged until after the midterm elections, they have given the president a long leash and will continue to do so, the car fares would upset that, it would change the calculus," he said.
The Canadian government also announced $ 1.5 billion in subsidies to Canada's steel and aluminum industries.
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