NEWS
Canada on Tuesday moved to impose up to 50% tariffs on a raft of U.S. goods, including hundreds of steel and aluminum products, following a breakdown of trade talks and heated tariff escalation between the two neighboring countries.
The countermeasures, which go into effect Sept. 8, will mirror the U.S. Section 338 and Section 232 tariffs, as well as cover $27.6 billion in imports including seafood, dairy products, flooring, kitchen appliances and lawnmowers, according to Canada’s government. They also target more than 300 steel and aluminum products and derivatives.
U.S. steel and aluminum products that were previously subject to a 25% tariff will soon face a 50% rate as part of the countermeasures, according to Canada’s government. Steel and aluminum derivative products will be subject to 25% tariffs.
President Donald Trump last month signed three proclamations that would impose an additional 50% tariff against Canada’s imports under the authority of Section 338, citing discriminatory treatment of U.S. commerce.
The Section 338 tariffs took effect Aug. 22 and applied to all covered goods regardless of whether they were part of the USMCA. They do not apply to goods already listed under Section 232.
Canada’s Department of Finance on Tuesday said it had negotiated “intensively and in good faith” with the United States toward a “fair and comprehensive” trade agreement, but ultimately the new terms were not in the country’s best interest, “basically, asking too much of Canada, and offering too little in return.”
“Canada did not choose this trade conflict, but we need to respond to provide a level playing field to our businesses,” the agency said in a statement.
In addition to the countermeasures, Canada’s government introduced a $7.5 billion package of measures to support the country’s workers and businesses affected by U.S. tariffs.
Trump took shots at Canada on Tuesday, saying on his Truth Social platform that the country has been “ripping off” the U.S. for decades and has driven many American companies out of business. He also made threats to enact a 50% tariff on all cars, trucks, automotive parts and steel imports from Canada, as well as to rename Lake Ontario to Lake America.
“I deal with many countries, and Canada is easily the most difficult and unreasonable,” he posted.
U.S. steel and aluminum trade groups were noticeably quiet following Canada’s countermeasures Tuesday.
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