O, Canada…
Canada’s Department of Finance announced retaliatory tariffs as the trade war heats up with the Trump administration:
Following the U.S. decision to impose a 50 per cent tariff on $27.6 billion of Canadian goods effective August 22, Minister Champagne confirmed today that Canada will match the new U.S. tariffs dollar for dollar, rate for rate, with additional Canadian tariffs on U.S. goods. This focused response will protect Canadian workers, farmers, fishers, families, and businesses, defend industries harmed by unjustified U.S. tariffs, and help Canadian producers compete with U.S. products in the Canadian market.Effective September 8, Canada will impose counter-tariffs of 15, 25 and 50 per cent on products drawn from those targeted by U.S. Section 338 and Section 232 tariffs, with the rate for each product matching the corresponding U.S. rate.Canada’s counter tariffs will apply to products covering $27.6 billion in imports from the U.S. and will focus on sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, that are most impacted by U.S. tariffs.
The government will also provide support to workers and businesses affected by the U.S. tariffs with a $7.5 billion package.
Sigh. I hate tariffs.
However, Trump’s 50% tariffs on Canadian products sound scary, but trade experts pointed out the narrow scope of the levies.
The move “only applies to about 5% of Canada’s exports to the U.S.”
“If Canada’s retaliatory tariffs are similarly narrow, then neither set of tariffs would cause immediate, economy-wide upheaval, and both sides could live with them for some time,” trade attorney Patrick Childress told CBS News.
Given that Canada decided on “dollar-for-dollar” counter-tariffs, it only affects “about 6% of U.S. exports to Canada last year.”
Tariffs of any amount stink, but this is overall ridiculous. If you’re going to punish a country, then go big or go home.
At least Prime Minister Mark Carney admitted that the tariffs “will raise costs and reduce choice for Canadians.”
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