As the US-Canada tariff war escalated, Canada said it will announce C$29.8 bln in retaliatory tariffs on the United States on Wednesday in response to President Donald Trump’s steel and aluminum tariffs.
A Canadian who declined to be named told Reuters about the retaliatory tariffs by Ottawa.
Trump’s increased tariffs on steel and aluminum imports took effect on Wednesday as prior exemptions, duty free quotas and product exclusions expired, and as his campaign to reorder global trade norms in favor of the U.S. gains momentum.
Canada is the biggest foreign supplier of steel and aluminum to the United States.
The escalation of the U.S.-Canada trade war occurred as Prime Minister Justin Trudeau prepared to hand over power this week to his successor Mark Carney, who won the leadership race of the ruling Liberals on Sunday.
On Monday, Carney said he could not speak with Trump until he was sworn in as prime minister. Trump again on social media said he wanted Canada “to become our cherished Fifty First State.”
Retaliation from Canada and EU
President Donald Trump’s increased tariffs on all U.S. steel and aluminum imports took effect on Wednesday, stepping up a campaign to reorder global trade in favor of the U.S. and drawing swift retaliation from Canada and Europe.
Trump’s action to bulk up protections for American steel and aluminum producers restores effective tariffs of 25% on all imports of the metals and extends the duties to hundreds of downstream products, from nuts and bolts to bulldozer blades and soda cans.
Trump’s hyper-focus on tariffs since taking office in January has rattled investor, consumer and business confidence in ways that economists worry could cause a U.S. recession and further lag on the global economy.
(With inputs from Reuters)
