Canada retaliates against US tariffs

The failure of three days of trade talks between the US and Canada in Washington DC has reignited tariff tensions between the two countries. The Washington administration has begun imposing a 50 percent customs duty on approximately 20 billion dollars worth of Canadian goods.

Canadian Prime Minister Mark Carney announced that the US move would be met with a reciprocal rate. Carney stated that "one-for-one" reciprocal customs duties would be applied to US goods and announced that negotiations have been suspended.

The new US tariffs are expected to affect approximately 5 percent of Canada's exports to the US. Electronic products, industrial machinery, and dairy products are among the items that will be affected by the new taxes. These tariffs will be applied in addition to existing US taxes on steel, lumber, and automobiles.

The US administration had suspended the new 50 percent customs duties on Canadian goods for three days on August 19 to allow for an agreement to be reached. However, the decision was put into effect after no consensus was reached in the talks.

MUTUAL ACCUSATIONS FROM BOTH SIDES

US Trade Representative Jamieson Greer argued that Canada missed the opportunity for an agreement. Greer said, "Canada refused to conclude the trade agreement under the terms agreed upon earlier this week. Despite the US offer to treat Canada as the best exporter to our market, Canada's new demands and backtracking on other commitments have upset the careful balance reached in recent days."

Carney, on the other hand, said that the US's last-minute changes were unfair. The Canadian Prime Minister stated, "I have decided to suspend trade negotiations with the US and have instructed the negotiators to return to Ottawa. The last-minute changes to the terms proposed by the US were unfair, economically inefficient, and called into question the credibility of any agreement."

Trade tensions between Washington and Ottawa had previously risen due to the Trump administration's tariffs on certain imports from Canada. Canada's retaliatory steps and the US's new tariff threats have shown that tensions have not eased despite the intensive negotiations conducted between the two countries since July.

News Source: 12punto