Canada Retaliates With Tariffs on $12.8 Billion of U.S. Goods

Canada Retaliates With Tariffs on $12.8 Billion of U.S. Goods

Trump said he "loves" both Canada and Mexico but accused them of taking advantage of the United States through through unfair trade arrangements. All three jurisdictions are the largest trade partners of the US.

He also said he believes there will not be a long-term impact on relations with the affected countries and that they "will get over this in due course".

"Next week, we're hosting a summit of the G-7 of world leaders, and the airfield, the military base that Air Force One is going to land in was put there in World War II to protect an aluminum smelter that was providing to the military effort", Trudeau added. "This is exactly what happened in the 1930s (prior to World War II)".

In the case of Canada and Mexico, the USA had hoped to address its national security concerns in the context of ongoing efforts to renegotiate NAFTA, but those talks have taken longer than expected and there is now no precise end date in sight, Ross said.

All taxes on imports harm American consumers, workers, and businesses.

The Dow Jones Index dropped 250 points on the announcement and fear is growing that similar tariffs will be announced by Russian Federation and China in coming days.

The Mexican government, already at loggerheads with Trump over immigration and the border wall, said it would levy import taxes on U.S. exports of pork bellies, blueberries, apples, grapes, certain cheeses, and various types of steel.

Prime Minister of Canada Justin Trudeau slammed the tariffs as an "affront" to a longstanding relationship between the USA and Canada during a press conference.

European Union exports potentially subject to U.S. duties are worth €6.4bn ($7.5bn).

Canada hasn't yet laid out its response, but the United States imports more steel from Canada than any other country in the world - 5.8 million metric tons past year alone.

Last week, The Trump administration announced an investigation into whether automobile imports are hurting United States national security, laying the groundwork for another trade fight.

But he exempted Canada, Mexico and the European Union to buy time for negotiations - a reprieve that expired at midnight on Thursday.

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Mexico said it will impose wide-ranging "equivalent " measures, including on American steel and farm products.

The European Union said it would impose taxes on a number of United States imports, including Harley-Davidson motorcycles, Levi's jeans and Kentucky bourbon. David O'Sullivan, the EU's ambassador in Washington, said the retaliation will probably be announced in late June.

Trump had campaigned for president on a promise to crack down on trading partners that he said exploited poorly negotiated trade agreements to run up big trade surpluses with the US.

Secretary Ross made it clear thta restructuring tariffs on USA goods is a high priority for the Trump administration.

Despite slapping tariffs on Canada and Mexico, the United States remains engaged in trade negotiations - specifically with the North American Free Trade Association between the U.S., Canada and Mexico.

In announcing the retaliatory measures, Prime Minister Justin Trudeau called it "a turning point in the Canada-U.S. relationship", and expressed hope that "common sense" will prevail, despite seeing no sign of it from the U.S. administration.

Fears of a global trade war are mounting as the Trump administration also considers tariffs on USA auto imports and duties on US$50 billion in Chinese goods. But the NAFTA talks stalled.

European Commissioner for Trade Cecilia Malmstroem said the EU had tried "everything to avoid this outcome" in talks with Trump's administration over the last two months.

"Our steel and aluminum industries are a source of critical supply for American manufacturers and its defence industry".

Stocks in the US fell as the administration ignored pleas from business lobbying groups including the US Chamber of Commerce to forego tariffs.

House Speaker Paul Ryan and several leading Republicans in Congress were critical of the administration's tariff action.

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