Canada announces billions of dollars in tariffs against US

Canada announces billions of dollars in tariffs against US

"Canada has no choice but to retaliate in a measured, reciprocal, dollar-for-dollar response", Canadian Foreign Affairs Minister Chrystia Freeland said Friday at a steel manufacturing facility flanked by workers.

Canada has announced billions of dollars in retaliatory tariffs against the United States in a tit for tat response to the Trump administration's duties on Canadian steel and aluminium.

Canada will offer an aid package worth between C$500 million ($376.90 million) and C$800 million to help steel and aluminum industries and workers who have been hit by US tariffs, a source familiar with the matter said on Thursday.

"Our approach is we will not escalate, but equally we will not back down", Freeland insisted. The list of more than 250 goods subject to Canadian duties include Florida orange juice, and Kentucky bourbon. More than 80 per cent of the vehicles produced in Canada are shipped to the United States.

So far, Trudeau's move to impose retaliatory tariffs has the backing of the Canadian people.

The Americans have applied tariffs to Canadian softwood lumber, and are threatening to do so on autos.

Ohio-based trade lawyer Dan Ujczo said he believes there's a significant chance Trump will introduce auto tariffs to some degree, although he predicted they could target the European Union rather than Canada.

"In terms of job losses, my message is clear: we stand with Canadian workers and we're prepared to support Canadian workers if and when that happens", said Hajdu, the federal labour minister.

Freeland has repeatedly warned that the imposition of both steel, aluminum and auto tariffs would hurt American workers just as much as those in Canada.

Canadians are particularly anxious about auto tariffs because the industry is critical to Canada's economy.

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Rising trade tension between Canada and the United States and a pushback from USA businesses on further tariffs, including on imported autos, pressured a White House that has championed an "America First" protectionist stance since Mr Trump took office in January 2017.

Previous Fourth of July parties organized by the U.S. Embassy in Ottawa have attracted almost 4,000 guests, according to its official website.

Ottawa also unveiled an aid package for affected industries and workers worth up to C$2 billion, consisting mainly of up to C$1.7 billion in commercial financing and insurance for firms in the steel and aluminum sectors and related industries.

"I've politely declined because I'm not happy with the direction of the American government and their constant attacks on our country", Ottawa Mayor Jim Watson told public broadcaster CBC.

The tariffs have also triggered complaints against the United States to the World Trade Organisation (WTO).

But relations between these two neighbours have plunged to their lowest in decades.

On the campaign trail this week, Mr Trump continued his attacks on Canadian dairy, wheat and duty-free customs allowances for Canadians returning home, saying they were scuffing up brand new shoes in order to sneak them in.

Canadian steel is used in American tanks, and Canadian aluminum is used in American planes.

Among the actions the chamber recommends are continuing to pursue the case through the World Trade Organization (WTO), trying to open new markets to Canadian goods beside the USA and making concessions to the Americans on areas such as supply management in dairy.

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