Canada will respond “solid and clear” to the latest trade barriers planned by US President Donald Trump, Prime Minister Justin Trudeau said.
Trump says he will collect a 25% import tax on all steel and aluminum products in the United States starting March 12th. In other words, there is a month for both parties to negotiate. Canada is the top exporter of both metals to the US.
Since taking office last month, Trump has announced a wide range of these tariffs to seek to protect US jobs and industries. Economists say it’s likely to raise prices for ordinary Americans.
The new tariffs were “completely unfair,” Trudeau said, as Canada fell into its second trade standoff with Washington in a few weeks.
Canada was “the closest ally of the United States,” he added.
A wide range of metal exporters are rushing to trade in response to the steel and aluminum tariffs Trump has sworn.
The US imports 6 million tons of Canadian steel products and 3 million tons of aluminum products than any other country.
Canada’s metal exports have made North America “more competitive and safer,” Canada’s François Philippe Champagne argued Monday.
Canadian provincial leaders have also denounced Trump’s plans. Quebec’s François Legault said he sent millions of tons of aluminum to the United States a year in his province alone.
Pierre Poilierble, the official federal opposition leader, said that if he is elected as Canadian prime minister, he will issue a tariff match targeting the United States.
The head of the Canadian Steel Producers Association said similar measures by Trump have undermined industries in both countries during his first term, warning that various sectors could be attacked.
“We have the steel we need, and they have the steel we need… we need each other,” Katherine Cobden told CBC.
Customs duties are taxes charged on goods imported from other countries. Companies importing goods from overseas pay tariffs to the US government.
Economists warn that if, for example, sellers choose to raise prices after paying for a higher operation on imported goods, they are likely to raise prices for U.S. consumers.
US companies relying on imports have also raised concerns, but Trump says his plans will boost domestic production. On Monday, he said his plan was “a big deal and the beginning to enrich America again.”
The taxes Trump also used during his first term at the White House are key to the return president’s economic vision. He is also trying to deal with the trade deficit. In other words, the US imports more than exports.
Trump’s allies also say that when he wants to do something for him to another country, he sees such measures as an essential negotiating tool.
Since returning to the White House last month, Trump has already become one trade standoff with Canada and other US neighbors, Mexico.
However, he agreed on February 4 to delay the threat of a 25% tariff on all goods arriving from both countries for 30 days. The postponement came after his two neighbors vowed to take action to tackle illegal migration and the drug flow to the United States.
The two countries simultaneously delayed their own retaliatory measures.
Canada and Mexico are some of Trump’s top trading partners, and together with China, Trump is targeting 10% tariffs on all goods entering the US. The tax has already been enforced, and China is fighting back on measures against US goods.
In addition to other delay plans targeting Canada and Mexico with certain tariffs, Trump also suggests that he could collect taxes on goods imported from the European Union “quickly.”
Recently, when asked about the threat of retaliation from his trading partners, Trump said he “don’t care.”
