The trade conflict between the two countries has been ongoing for some time. The US has already imposed tariffs of 15 to 50 percent on steel, aluminum, and copper imported from Canada.
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US President Donald Trump has decided to impose a 50 percent tariff on various goods imported from Canada. The White House has said that this strong step has been taken in response to Canada's unequal and discriminatory treatment of American cars, dairy products and alcohol. According to the White House, the new tariff will take effect within the next 30 days. This has further escalated trade tensions between the two North American neighbors.
Trump has made this decision under Section 338 of the US Tariff Act. This 1930 act gives the president the authority to decide to impose a tariff of up to 50 percent on goods exported from any country.
The new tariff is said to apply to all listed goods, whether or not included in the existing free trade agreement between the United States, Canada and Mexico.
This decision will directly affect industrial goods from Canada, ranging from alcohol, hockey sticks, daily necessities to cement.
However, the new tariffs will not apply to energy, potash (a fertilizer used in agriculture), fish, minerals and other products. Trump has already imposed tariffs on these products using Section 232, which is related to national security.
Canadian Prime Minister Mark Carney has strongly objected to the US move. He said that this unilateral decision by the US administration is a direct violation of the existing agreement.
Despite this, Prime Minister Carney has made it clear that Canada is ready to protect its economic interests and move forward with trade talks with the US in the coming weeks.
The trade conflict between the two countries has already been ongoing. The US has already been imposing tariffs of 15 to 50 percent on steel, aluminum and copper coming from Canada. Canada has also imposed a 25 percent retaliatory tariff on American vehicles and metals.
Ontario Premier Doug Ford has condemned the move. He said it would not be economically beneficial for both sides of the border. He also said he would not stop working in Ontario's interests. Earlier, Washington had expressed dissatisfaction with Ontario's increase in tariffs on American products.
‘I will not stop fighting to protect Ontario. If these tariffs go ahead, Canada should respond with tariffs. Dollar for dollar.’
Candace Laing, CEO of the Canadian Chamber of Commerce, said the decision would ultimately be regretted by the Trump administration. In an interview with the Associated Press (AP), she suggested that the two countries would also be willing to hold talks within 30 days.
