Justin Trudeau's government has agreed to pay US $ 16.6 billion (US $ 12.6 billion) in US goods and donated money to businesses and workers damaged by US taxes on Canadian steel and aluminum exports.
Secretary of State Chrystia Freeland announced last action on Canada's National Day on July 1. Products such as beer kegs, mustard and certain jams have been removed from the final list, which does not deviate much from an earlier proposal.
The tariffs correspond to those of President Donald Trump's administration. Canada will apply 25 percent to steel products and 10 percent to aluminum and consumer goods. The levies remain in force until the US abolishes its tariffs on Canadian steel and aluminum materials.
"We will not escalate and we will not give in," Freeland told reporters at a steel mill in Hamilton, Ontario. "We work very closely with our like-minded partners in the European Union and Mexico." She also reiterated that the US measures are "illegal" and America has a trade surplus with Canada for iron and steel.
Canada will provide $ 2 billion in support to affected workers, including plans to expand a work-sharing program and improvements to a corporate innovation fund, similar to the steps the government has taken to mitigate the impact of a softwood -Spucking to cushion
The country is also expected to prepare a further quota of steel from other countries to prevent dumping or diversion after US tariffs have come into force. Secretary of Innovation Navdeep Bains said next Friday to Freeland that he will soon act on this file while he refuses to give details of how it would work.
The tariff response it's the latest development in a escalation spit between the two countries, which tr annually more than $ 500 billion in goods. The US and Canada are also negotiating to update the North American Free Trade Agreement, which includes Mexico.
The Americans have imposed duties on Canadian sawnwood and are threatening to use them on cars. The latter step is seen as a serious threat to Canadian growth and the North American auto sector as US automakers depend heavily on supply chains, including their two neighbors.
( adds ministerial comments and support package from the first paragraph). )