Canada Imposes Major New Tariffs on American Goods

Canada Imposes Major New Tariffs on American Goods

As temperatures and tensions increase, the measures targeting Can$16.6 billion (US$12.6 billion) in USA steel, aluminum and consumer goods will take effect on Sunday, when Canadians celebrate a national holiday and just days before Americans celebrate Independence Day amid a heatwave expected in both countries. Other US imports, from ketchup to pizza to dishwasher detergent, will face a 10 per cent tariff at the Canadian border, the same as America's tax on aluminium.

FBN's Kristina Partsinevelos on Canada imposing retaliatory tariffs on the U.S.

US steel tariffs, which went into effect on June 1, are expected to be particularly painful for Canada.

Canadian Minister of Foreign Affairs Chrystia Freeland announced the tariffs at a steel facility in Hamilton, Ontario, where she was flanked by brawny workers in yellow hard hats. But that effort has stalled, and President Trump said Sunday that he didn't expect a deal that he could support until after the US midterm elections in November.

Prime Minister Justin Trudeau's government released on Friday the full list of items that Canada is targeting. "We share common goals, strong people-to-people ties, and a mutually beneficial trading relationship that is the envy of the world - reflected in our joint effort to update the North American Free Trade Agreement for the 21st century", Trudeau said in a statement congratulating Lopez Obrador on his win.

Mexican president-elect Andres Manuel Lopez Obrador said he supports the continued renegotiation of NAFTA.

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Trump says in a Fox News interview that aired Sunday that he could quickly sign an agreement with Mexico and Canada, "but I'm not happy with it".

On Ottawa's tariffs on USA goods, White House spokeswoman Sarah Huckabee Sanders said Monday that it does nothing to help Canada and only hurts American workers. She said, however, Canada "will not escalate and we will not back down".

In recent months, Trump has frequently attacked Canadian trade barriers on agriculture with a particular focus on dairy. Do you know what happened?

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

Trudeau has insisted the USA president's complaints about Canada's trade barriers are the result of his refusal to give in to Trump's demands to do away with the country's supply-managed system that protects dairy, poultry and eggs farmers.

"The two leaders agreed to stay in close touch on a way forward", according to the prime minister's office.

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