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Canada targets toilet paper, whiskey in the Trump Customs War

By Josh Wingrove, Stefanie Marotta and Theophilos Argitis | Bloomberg News

From Mustard to Motorboat, Canada Wants to Shoot Donald Trump on His National Holiday

Prime Minister Justin Trudeau will celebrate Canada's 151st birthday on Sunday by charging tariffs of approximately $ 19.4 billion (14.6 billion Dollars) imposed US imports in response to US taxes on Canadian steel and aluminum, which came into force a month ago.

While tariffs alone will not stem the expansion of Canada or fuel headline inflation, they are fueling the growing tension between two of the world's largest trading partners. Talks about a new North American Free Trade Agreement have stalled, and Trump has threatened to impose additional duties on the cars. Meanwhile, Canada is preparing new tariffs on non-US steel imports next week to prevent dumping.

"It is unfortunate that we must interfere in such a trade war, but Mr. Trump has been forced upon us," Toronto-based attorney Lawrence Herman said in a telephone interview. "Canada has no choice but to respond in accordance with the rules of international trade."

Trudeau will lead the Canada Day celebrations by visiting a pair of battlefields on Sunday: a southern Ontario town near the US border, once famous for Heinz Ketchup, and a steel plant in Saskatchewan meeting with the workers in each.

Trudeau's proposed tariffs on US goods ranged from steel and aluminum to whiskeys, mustard, toilet paper, washing machines, motor boats ̵

1; even maple syrup. The tariffs amount to 25 percent for steel and 10 percent for everything else. The final tariff list will be published this week along with measures to support the domestic steel sector.

Customs rates are overwhelmingly popular in most polls in Canada, but come with discomfort as prices can rise to hundreds of goods

Scott Brundle, dealer director for sale at Town & Country Marine in Lakefield, Ontario , said the tariffs on boats will lead to a sticker shock for buyers.

"It will dramatically impact our business," said Brundle Stock levels are lower than he would like, as he breaks orders and works with suppliers to find ways to make sales profitable. US manufacturers selling in Canada include Larson Boats of Minnesota and Brunswick Corp. of Lake Forest, Illinois.

"We'll kick the can down the street," Brundle said. "We'll get hold of some inventory here to fill the showroom, and pay customs to flaunt them, and then we'll take orders, from there what we charge for the orders, I do not know." [19659003] Tariffs could add C $ 10,000 to the cost of a wakeboard boat from Malibu Boats Inc. of Tennessee. Brundle has three of them on order in July.

"So do the math – these three boats will cost C $ 30,000 to $ 40,000 in cash." However, the economic impact of the recent collective bargaining campaign is minimal compared to a pair of other Canadian and US trade issues: potential car fares and threats against Nafta. Trump and Trudeau have recently collided, and the president warns that Canada will pay for it.

"If they said tomorrow that these car fares are in place, that will be a significant achievement," said Mark Chandler, head of pension research at RBC Capital Markets. "People are more worried about what happens to cars."

Linda Hasenfratz, CEO of the auto-part factory Linamar Corp., went further and said that this was the "next and final step to economic disaster"

The tariffs are never good, they add costs that ultimately affect the It hit consumers and bumped the economy, "she said, adding that US metal tariffs are increasing the cost of the auto industry, which will eventually lead to layoffs, and Linamar shares fell to a 14-month low on Thursday in Toronto. There are mixed views on how quickly Canada should continue its retaliation: Canada's largest steel producer, a unit of ArcelorMittal, has warned that 1,000 direct jobs are threatened by US taxes, and Ken Neumann, national director of United Steelworkers For Canada, the deputy this week said he was "very concerned that Canadian industry was already affected by the one-month V

But others fear the government is moving too fast.

Domestic steel companies across the country expect Canada's retaliatory tariffs to increase as competition and supply of steel on the market continue to decline.

"We saw US prices soar into the sky, which had an impact" We are raising Canadian prices, "said Tim McMenamin, vice president of Ferrostaal Steel Canada Inc., a concrete importer

"If I had a message for the federal government today, it would be better to jump before you jump," Manitoba's Treasury Secretary Cameron Friesen said during a meeting of finance ministers in Ottawa is a view repeated by a business owner during legislature hearings.

"I think Trump is a bear, we should not poke him too hard, the bear will start roaring," said Bob Verwey, president of Owasco Inc. (19659003) The direct economic impact of Canada's US metal tariffs and retaliation – either in terms of economic activity or inflation – is anticipated notably low. Jean-Francois Perrault, chief economist at Scotiabank, expects "maximum" growth of 0.1 percentage points and less than one tenth of a percent of inflation.

"Our impression is that the impact on the economy will be low, but could be significant for the steel industry over time," said Perrault, adding that the outcome of the Nafta negotiations remains Canada's central trade issue ,

Steel costs may continue to rise as Canada enforces its tariff and quota plans Non-US imports from China and other countries. The measures can already be announced next week, informed the familiar with the plans people. Finance Minister Bill Morneau said his government is "absolutely" behind metal-affected companies.

Canada is also facing risks from the trade dispute between the US and China. Canada sends three-quarters of its exports to the US, so any slowdown in US growth will affect Canada. At the same time, it is a big oil producer and any slowdown in China could dampen demand.

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