Canada Imposes Major New Tariffs on American Goods

Canada Imposes Major New Tariffs on American Goods

Canada announced Sunday that the tariffs amount to $16.6 billion Canadian dollars or $12.5 billion in US dollars.

Canada and Mexico initially were exempted from the USA 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).

Canada officially implemented tariffs on about $12.5 billion worth of USA goods Sunday, the latest offensive in the growing trade battle between the United States and other major economic powers.

If Trump steps up his attacks on Canada's economy and imposes a 25 percent tariff on automobiles as threatened, it would lead to "carmageddon", Automotive Parts Manufacturers Association president Flavio Volpe told a Canadian House of Commons committee hearing on Tuesday.

The new Canadian tariffs, which took effect at 12:01 a.m. Sunday, are hitting a long list of US consumer goods, including ketchup and other Kraft Heinz products.

"The US tariffs leave Canada no choice but to defend our industries our workers and our communities", Canadian Foreign Affairs Minister Chrystia Freeland said.

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.

Prime Minister Justin Trudeau said it was necessary for Canada to hold the United States to account.

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"We've been very nice to Canada for many years, and they've taken advantage of that", Sanders said.

"The bottom line is that some of the people buying American products may switch to the Canadian products, that's one source of increased profit for the Canadian producers", says Littler.

A former Mexican congressman and founding member of a Mexico-based think tank says it's time for Canada to drop the gloves in its trade fight with the United States.

Trump railed against his trading partners during the meeting, according to sources, and withdrew his support for a joint communique after leaving the summit, angering and bewildering some of Washington's closest allies.

"You know, I've been right across the country all day, starting in Leamington, Ontario, through Regina, Saskatchewan, and ending here, and the sun is a long way from setting, so we've got a lot of time to party still".

President Donald Trump said Sunday he wants to wait until after the election to finalize a new deal on the North American Free Trade Agreement - but it wasn't clear whether he meant the USA midterms in November, or a Mexican vote that's expected to lift a left-wing leader into power.

"I don't see how (Trudeau) is going to get this done", he said.

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