Canada hits $13 billion of United States goods with new tariffs

Roman Schwartz
July 4, 2018

Canada and Mexico initially were exempted from the U.S. metals tariffs - as was the European Union - but Trump allowed the duties to take effect June 1 after talks stalled to revamp the 1994 trilateral North American Free Trade Agreement (NAFTA).

A government official familiar with the plan says now that Mexico's presidential election is done, Ottawa wants to restart talks as soon as possible, even though Trump says he won't sign a new deal until after USA voters go to the polls in November. "I want to make it more fair".

Trump has repeatedly suggested Canada was profiting from US trade, and his blistering comments after the G7 meeting drove bilateral relations to their lowest point in decades.

Canada slapped the US with tariffs on over $12 billion worth of goods Sunday as the country celebrates Canada Day.

President Donald Trump infuriated US allies - from Canada to Mexico and the European Union - by imposing tariffs of 25 percent on imported steel and 10 percent on aluminum.

Trump himself has already threatened to go even further by putting tariffs on the auto sector, which could prove far more damaging for the Canadian economy than the steel and aluminum duties.

Trudeau was speaking on the front steps of Highbury Canco with CEO Sam Diab.

The American goods that Canada has placed tariffs on include ketchup, lawn mowers and motorboats.

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Diab said in an interview that the tomato-processing facility will face increasing cost pressures as a response to the Canada-U.S. trade dispute. "This touches families and lives and homes and communities".

Angela Egan said she feels Trump is trying to "bully" Canada into submission.

"This policy of appeasement, or this policy of playing nice that was attempted by the Trudeau government at the beginning, I think that that time is over", Gomez, a founder of the Mexican Council on Foreign Relations, told guest host Catherine Cullen.

"I have made it very clear to the president that it is not something we relish doing but it is something that we absolutely will do", he said.

"U.S. businesses are really paying attention".

On Monday, Prime Minister Justin Trudeau spoke with Lopez Obrador by phone.

He then returned to his themes from earlier in the day, talking about Canadians being "there for each other", looking to the future "with optimism and strength", and "facing down any challenges that come our way".

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