Canada Announces Retaliatory Tariffs Against US Customs Duties
Taking a new step in the trade war, Canada decided to retaliate on imports worth 27.6 billion Canadian dollars against high tariffs enacted by the US in August, while also announcing a new 7.5 billion dollar support package for affected workers and businesses.
In response to 50 percent customs duties imposed by the US on 20 billion dollars worth of Canadian products, the Canadian administration announced that it will implement counter-tariffs of 15, 25, and 50 percent on US-origin products, effective from September 8.
Justification and Course of Negotiations
Speaking at a press conference, Canadian Finance Minister François-Philippe Champagne stated that the government had been working in good faith for months towards a mutually beneficial agreement with the US, but that the terms presented were economically unsustainable and unacceptable.
Recalling that the US administration imposed a 50 percent customs duty on approximately 28 billion Canadian dollars worth of goods on August 22, Champagne emphasized that Canada was forced to give a proportionate response to protect its workers and industry.
Counter-Tariffs and Affected Sectors
According to a statement from the Canadian Ministry of Finance, the counter-tariffs to be applied from September 8 will target 27.6 billion Canadian dollars worth of US products and will match one-to-one the rates imposed by the US.
While products subject to a 50 percent duty include steel, aluminum, furniture, and clothing items, a 25 percent customs duty will be applied to products such as household appliances, cheese, and seafood.
Economic Support Measures
Aiming to maintain the market competitiveness of Canadian producers, the government will implement a new 7.5 billion dollar aid package in addition to the 25 billion dollars of support previously provided for businesses and workers adversely affected by US tariffs.