Canada Retaliates Over "Absolutely Absurd" Trump Tariffs, Says "Will Not Back Down"

Canada retaliated at the Trump administration' steel and aluminum tariffs on Friday, vowing to impose punitive measures on C$16.6 billion ($12.63 billion) worth of American goods until Washington backs down. The tariffs, which will come into effect on July 1, will mostly target U.S. steel and aluminum products, as well as foodstuffs like coffee, ketchup and whiskies (the full list can be found here).

“We will not escalate and we will not back down,” Foreign Minister Chrystia Freeland told reporters at a Stelco Holdings in the Ontario steel city of Hamilton.

“We are acting very much in sorrow, not in anger,” said Freeland, stressing the closeness of the overall relationship. According to Reuters, bilateral trade is worth around C$2 billion a day.

Freeland also said she expected the negotiations would enter an intensive phase after a Mexican presidential election on July 1.

Freeland's announcement marked a new low in ties between the two neighbors and trading partners which have become painfully strained since Trump took power.  As in the case of European and Chinese tariffs, the measures are designed to pressure Trump by focusing on goods from states where his political allies hold sway.

Separately, 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.

To some the Canadians, Ottawa's response was not enough: the head of the Teamsters Canada union welcomed the announcement and said Ottawa should consider expropriating American pharmaceutical patents if necessary.

Canada’s measures to slap counter-tariffs on U.S. aluminum and steel, as well as an aid package for both industries, may need to be expanded if the trade dispute drags on, said Ken Neumann, national director of United Steelworkers.

He added that the Canadian government should consider “immediate” safeguards to steel dumping, and that loan guarantees and innovation fund announced by government is “helpful” but assistance for workers is “much more modest”

“The counter-tariff and community support measures announced today by the federal government is a good first step that will need to be expanded if the trade dispute continues beyond the short-term.”

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Meanwhile, the Trump administration is now studying whether to retaliate further by putting tariffs on Canadian autos, which economists say would help plunge the economy into a recession. Freeland called the idea “absolutely absurd”.

“We believe that cooperation is a better path forward than escalation,” said Kent Bacus, the association’s director of international trade and market access.

U.S. officials have linked the tariffs to slow progress in talks to modernize the North American Free Trade Agreement, which Trump says is a disaster and must be changed.

Finally, as disclosed one month ago, here is the list of US exports that will see a 25% tariff:

And 10% tariff on the following items...

Comments

King of Ruperts Land HockeyFool Fri, 06/29/2018 - 20:49 Permalink

Canada is acting loony tunes, batshit crazy. Fight a trade war with USA, Yup that will work for sure. That is what happens when a country's government goes full on fag, and fag (and pedo) wanna be, with 50% chicks for show.

What will happen when the granola's up there can't get their fruits and vegetables? Do they even make their own powder and bullets? Maybe one plant in Oakville? If the USA put sanctions and trade blockades on them, they would be down to bread and water,

In reply to by HockeyFool

FIAT CON King of Ruperts Land Fri, 06/29/2018 - 21:02 Permalink

Our previous Conservative leader was sooo bad, we had to vote him out, unfortunately too many people voted for the foolish Turdo, many women voted for him because he was cute, (just like so many Americans voted for Hitlery because they wanted the first women POTUS). This caused him to win with a majority. This blew his bubble up  sooooo big, and this explains why he is such an extra big fool. He is always a fool, and no way qualified to be our Prime Minister. I feel/hope we will vote the Conservatives back into power next election and he will be be gone.  

In reply to by King of Ruperts Land

indus creed FIAT CON Sat, 06/30/2018 - 02:27 Permalink

Other than being forced to cede to neocon positions in international affairs, on account of Bush-Jr and Obama being his counterparts -- Canada really is a junior partner and is expected to bend to US expectations --  and some hanky-panky in TFW (temporary foreign workers) policy, Harper wasn't all that bad.

His govt. was definitely a step above the buffoons currently holding office in Canada. 

 

In reply to by FIAT CON

MasterPo August Fri, 06/29/2018 - 17:04 Permalink

Canada retaliated at the Trump administration' steel and aluminum tariffs on Friday, vowing to impose punitive measures on C$16.6 billion ($12.63 billion) worth of American goods until Washington backs down. 

"And if that doesn't work, we're gonna kick our heels on the floor and hold our breath 'till we turn blue, Eh? You bunch of hosers..."

In reply to by August

Joe Trader wildbad Fri, 06/29/2018 - 18:36 Permalink

trudeau's a hypocrite

he steals $20 billion per year from Western canada and gives it to his liberal base in quebec & atlantic canada - and blocked the construction of new pipelines

 

trudeau could simply make some minor adjustments and comply - but it's more important to appeal to his liberal base in eastern canada - and put on a full display of his severe case of Napoleon Syndrome.

 

In reply to by wildbad

afronaut Joe Trader Fri, 06/29/2018 - 21:06 Permalink

It's not Trudeau. He has no clue. It's the people around him that make terrible decisions on his behalf. He's never had an idea of his own. First year engineering dropout. Geography dropout. The guy is a complete idiot, riding on daddy's coattails.A fuckin moron

In reply to by Joe Trader

Iskiab Four Star Fri, 06/29/2018 - 17:54 Permalink

Yup, Canada is being smart about it and targeting pro-Trump states and swing states.

In Ohio alone, the state is the leading exporter of a wide variety of goods to Canada that will likely face tariffs. Based on 2017 figures, the list includes: washing machines ($131 million); toilet paper ($91 million); organic face wash ($100 million); lawn mowers ($83 million); candles ($40 million); room deodorizers ($27.5 million); and glue ($23 million).

In reply to by Four Star

bloofer Iskiab Sat, 06/30/2018 - 07:08 Permalink

I'd be interested in a state-by-state breakdown of chief exports to Canada. (Maybe I'll google it when I have more time.) Since there are several Midwestern agricultural states whose chief exports are to Canada, I'm thinking ag products probably account for most exports.

Hence, I'm thinking the heaviest blow will fall on Big Ag--the heavily subsidized welfare queens of farming, and the chief supporters of Monsanto products. In my state, the people running Big Ag operations are not very numerous. Though they tend to be the ones controlling a lot of wealth and to have a lot of political power at the state and county level, their voting power is insignificant. E.g., when there's a petition going around to allow farmers to use certain Monsanto products, it typically gets about ten signatures per county, from the ten people in the county running Big Ag operations.

If Big Ag were bankrupted, it would be the best thing that could happen to America.

In reply to by Iskiab

Iskiab bloofer Sat, 06/30/2018 - 08:39 Permalink

Canada produces a lot of food, most of it’s food imports are foods that can’t be grown in Canada due to climate.  

The dairy dispute between Canada and the US is about how the two countries differ in their subsidies.  Canada limits production with quotas, so they limit imports as well.  The US uses subsidies on production.  Trump is asking for Canada to open it’s market so the subsidized dairy there can flood the Canadian market, it won’t happen.

Most imports to Canada from the US are value added products.  Canada is a resource economy, so trade involves Canada shipping materials to the US and them shipping back finished goods.  That’s why some industries like the nail industry in the US will evaporate in a trade war.

In reply to by bloofer