Canada hits US with retaliatory tariffs: 'We will not back down'
S E E D E D C O N T E N T
Canada has announced billions of dollars in retaliatory tariffs against the US in a tit-for-tat response to the Trump administration’s duties on Canadian steel and aluminum.
Justin Trudeau’s government released the final list of items that will be targeted beginning 1 July. Some items will be subject to taxes of 10 or 25%.
“We will not escalate and we will not back down,” the Canadian foreign minister, Chrystia Freeland, said.
The taxes on items including ketchup, lawnmowers and motorboats amount to $12.6bn.
“This is a perfectly reciprocal action,” Freeland said. “It is a dollar-for-dollar response.”
Freeland said they had no other choice and called the tariffs regrettable.
Many of the US products were chosen for their political rather than economic impact. For example, Canada imports just $3m worth of yoghurt from the US annually and most of it comes from one plant in Wisconsin, the home state of the House speaker, Paul Ryan. The product will now be hit with a 10% duty.
Another product on the list is whiskey, which comes from Tennessee and Kentucky, the latter of which is the home state of the Republican Senate leader, Mitch McConnell.
Freeland also said they are prepared if Donald Trump, the US president, escalates the trade war.
“It is absolutely imperative that common sense should prevail,” she said. “Having said that, our approach from day one of the Nafta negotiations has been to hope for the best but prepare for the worst.”
Trump has explained the steel and aluminum tariffs by saying imported metals threatened the United States’ national security – a justification that countries rarely use because it can be so easily abused. He is also threatening to impose another national security-based tariff on imported cars, trucks and auto parts. That threat could be a negotiating ploy to restart talks on the North American Free Trade Agreement (Nafta).
Freeland said there are no grounds for further US tariffs in response to Canada’s actions.
Canadians are particularly worried about auto tariffs because the industry is critical to Canada’s economy. Freeland said such tariffs would be “absurd” because the North American auto industry is highly integrated and parts made in Canada often go into cars manufactured in the US and then sold back to Canadians. “Any trade action is disruptive on both sides of the border,” Freeland said.
Freeland said an “intensive phase” of Nafta renegotiations will resume quickly after Sunday’s elections in Mexico.
“I don’t think we’ll see any reaction from the Trump administration. They are prepared for this,” said Dan Ujczo, a trade lawyer in Columbus, Ohio. “Candidly, the Canadian retaliation is a drop in the bucket compared to the retaliation that we’re going to see from China and elsewhere.”
Ujczo doubts Trump will announce auto tariffs because that would be a “red line for the US Congress” before the midterm elections. He said the hearings for possible auto tariffs are in late July.
“I don’t think Congress right now is expected to get engaged until after the midterm election. They’ve given the president a long leash and will continue to do so. The auto tariffs would disrupt that. It would change the calculus,” he said.
The Canadian government also announced $1.5bn in subsidies for Canada’s steel and aluminum industries.
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I saw a headline yesterday, "Trump believes Americans are ready to suffer to win the trade war."
Ummmm... What was the justification for this mess? Does anyone know?
I know, I know!! The Kenyan Muslim thought our trade agreements were ok, and everything the Kenyan Muslim did was wrong.
Oh.
You're right.
Our tariff situation was an Obama legacy, so it had to be disrupted.
Of course!
Maybe you want to suffer birther, but I don't.
One sided trade deals that the American people played no part in.
I have a word of advice for the Canadian version of "Little Lord Fauntleroy" (maybe an ancient Chinese proverb); "The tree dosen't come to the sparrow, the sparrow comes to the tree"
Imposed by the Wizard of Mordor, perhaps?
Imposed by the ruling elite with their hyped up "knowledge of what's best for the rest of us".
So... Your "improvement" is to announce to all the world that all previous agreements - negotiated by the American government - are susceptible to unilateral annulment?
What value do you imagine other nations will put on any agreement negotiated with someone who doesn't respect their own nation's engagements?
Yup
What value do you imagine other nations will put on any agreement negotiated with someone who doesn't respect their own nation's engagements?
If they are not treaties sanctioned by the US Congress, they are subject to revision
OK. I understand your position. Let's hope other countries do not, because they will have no incentive to make any engagement with us, and if they do negotiate anything, they will feel no obligation to respect what is written.
A new epoch for diplomacy...
Well, there is the fact that the US is by far the worlds largest economy.
Canada, for one, has had a long history of shaping it's policies based on that economy. Are you aware that during the US experiment with "prohibition" Canada also had a form of prohibition (1916-1927) preceding ours.
Unlike ours, Canada allowed the production of alcoholic beverages for export only, thus Canadian producers ( in Ontario) were able to cash in on the illegal sale of alcohol just over the border.
No. Europe is larger.
Your "F you" approach is fine today, but China has a billion more people. China will be the most important economy. And China has a long memory.
Lol, I love that!
Oh my. An AWFUL lot of people are going to get hurt from what's happening and going to happen here. It will be people around the world, not just in the US. I'm getting hurt by this little game Trump is playing. My Canadian pension dollars have already dropped in value in currency exchange with Chinese RMB (Yuan), and I may not be able to afford the necessities I require. The farmers, the fishermen, the low wage earners in the US are already getting hit and they ain't seen nothin' yet.
As I said in another article about this, Trump needs a lecture, like Arthur Jensen delivered to Howard Beale in the movie Network. YOU HAVE MEDDLED WITH THE PRIMARY FORCES OF NATURE, MR. TRUMP, AND YOU WILL ATONE.
Watch that speech, and listen to it here - just click this link.
Sure, it's fictional and ridiculous, but I do believe that Trump HAS meddled with the primary forces of economics, and he will atone, because I am absolutely certain that China will NOT succumb, and if Trudeau does, he is paving the way to a Conservative government next year.
Not only do I believe Mr. Trump will atone, I think he will drag the Republican majorities down with him in November and unless some miracle occurs he will lose in a landslide in 2020.
It's not just that Trump has no idea what the right things to do are, he doesn't even care about getting anything right. His entire motivation is erasing everything Obama did. President Trump does not care about doing things for the good of the country, he only cares about what is good for him personally. This much is painfully obvious.
E.A Unlike YOU right, you are totally set to do and say what is Right!!
Please talk about the seed, not about other members. Thank you.
Yes EA, I always try to say and do what is right. Thanks for recognizing that!
E.A May you words return to you in full … it has been spoken it will so occur!
The basic problem is that Trump has no idea what he's doing... and has surrounded himself with sycophants who have neither the capacity nor the desire to stand up to him and say, "Mr President, you must not do that!"
I doubt he understands what Pruitt, DeVos, Zinke, and the other cabinet members are doing... but he does understand that they are unraveling everything Obama did, and that's all he needs to know.
I would not describe Trump avoiding a 2020 landslide loss as a "miracle". I would say "tragedy"...
The basic problem is that Trump has no idea what he's doing
This is evident every time he opens his mouth. Sorry to intentionally go off topic, but did you see his response when asked if he’s going to ask potential Supreme Court nominees how they would vote on RvW? “No. Everybody says you can’t do that.” That is literally the answer I would expect if we had elected a POTUS by randomly picking a name out of a phone book.
Is there as much opposition to Trudeau’s tariffs and protectionism in Canada as there is here with Trump? I would hope so but I doubt it. Trudeau’s tariffs will not be good for the Canadians.
Ummmm........ Dean...?? Seriously?
Yes I don’t see how the tariffs are going to help the Canadians.
I think Canada should pay 100% on its exports to America, and America should pay zero on exports to Canada.
And Trudeau should grovel before his master...
You can have your bourbon, I prefer Crown Royal anyway.
Probably a good thing i am not President.
NATO would be minus the US services. We are no one's pit bull. NATO countries would be responsible for their own defense. We will help out if they are attacked directly; but other than that- no more Libya, Afghanistan, Iraq, Syria- or any other type of cooperative nation building experiments. The US is out of that business for good. There isn't a country outside of Russia or China the US cannot handle on it's own. (Any war with those two would be nuclear anyway- and we have more than enough weapons to deal with that on our own as well) Maybe if they are forced to pay for a real military they will realize how valuable the US is as an ally and act appropriately in trade.
Canada would be reminded the reason they have a military one can literally drown in a bathtub is their proximity to the US, and nothing else. Do they really want to pay for a military to protect their vast country? A realistic trade deal would be far cheaper for them.
Mexico. The only wall would be a virtual one which would be monitored and safe guarded by the US military. No more border patrol. The US military would get to do their job and safe guard US borders. Congress would have to get off it's ass and reform immigration to compensate. E-verify, no more anchor babies, and cutting off access to all government aid at the federal, state, and local level after a certain time elapses and the immigrant has not found employment. As for trade- they need us far more than we need them. Especially if the border is shut down and the cartels that the Mexican government exists on cannot make money on crossing people over the border, drugs, or weapons.
Nothing to worry about. Trump is only a minor hiccup that our "allies" (meaning leeches) have to wait out. They will be trying to influence the next election at levels not previously seen to make sure he is a one term president.
I will give Trump credit for trying; but he is using the wrong weapon. Getting into a trade war is a losing battle as countries can match us tariff for tariff. Forcing them to pay for their own military is the correct route to take.
Interesting screed. It shows how false "facts" lead to bad policy ideas.
Much like Trump's "thinking", I suppose...
Canada should declare itself to be a neutral like Switzerland, since it has such an inept military, and provide a golden carpet for Russian and China to cross over to the US. What the hell, the DEW line was just there to watch for Santa Claus anyway. I wonder why my cousin bothered to be a bomber navigator in WW2 just to get himself shot down to end up fertilizing the poppies in Flanders Fields, and why did my uncle who brought me back a German officer's bayonet as a souvenir bother to fight in Europe as well - they should have left it up to the Americans. No butter tarts for you, Ronin2.
Leave NAFTA. Join the EU.
Problem solved.
Of course the Americans fought in Europe, but there were a few other nations that had a little to do with the defeat of the Nazis as well. Let's not puff out our chests too much, or the buttons will pop off our shirts.
Probably wouldn't make much difference. Trudeau is complying with the EU policy of welcoming as many migrants as possible anyway, even welcoming back the Canadians who went overseas to join ISIS.
How does it feel, Buzz, to be on the receiving end of the macho BS served up by NT's wingnuts?
Well... you deserve it! After all... you burned the Capitol.
Gee... You don't recognize BS.
Not at all surprising....
Now Buzz, I didn't like Ronin's comment either, but holding out on the butter tarts is cruel and unusual!
Pitiful.....
Pitiful..... AGAIN....
LOL. If I couldn't take it, I would have quit NT long ago, but the derision just strengthens my resolve. Criticism of what I post just makes me post more and more of it. The day is bound to come, as in Frank Herbert's novel Dune, when the sleepers will awaken.
That's what we said about Nazi Germany and Imperial Japan during WWII. (America was extremely isolationist--the vast majority said the war was not our problem.
But everyone has a plan-- until they get punched in the mouth!
We wanted no part of "foriegn wars"-- until we got punched in the mouth.
I am going to try and start boycotting merchandise made in the Red States. Phuck'em. I'm rooting for Canada in opposition to what America has become. A country run by the mob and blindlessly embraced and worshipped by the clueless.
Canada
1. our second largest trading partner
2. balance of trade basically a wash
3. 36 US states Canada is their largest trading partner
4. largest market for our agricultural products
5. defense of north America, I would suggest that if you need information on this to goggle it. Start with Norad.
It would seem that many do not understand that the US has high tariffs on many products to protect some of our industries. I have posted lists in the past but you can goggle and find them out.
We also provide subsidies to many industries. They can be federal, state or local...Check out Boeing and what they get in subsidies.
No one wins a trade war, the best one can hope for is that none of the blows it takes are fatal.
If you want to see what trade wars and isolationism have done it the past goggle Smoot Hawley.
Well, seeing as we are siding with Russia and the world's despots while turning our back on our friends, why don't we just invade Canada and take it over? It wouldn't be hard!
I've been to Quebec. Do we really want all those Frenchmen?
Hmmm... You could probably convince the anglophones to give Quebec to the US free of charge.
Don't forget about the French women!
Ummm... Québec City isn't Paris....
Try telling that to them.
Québec City is charming... despite all the tourists. But it's a small city. Montréal is a big city... but hasn't the same charm.
Oui!
The Francophones already tried to separate Quebec from Canada, and a Francophone Prime Minister stopped them - Justin's father, Pierre Elliott Trudeau. Canadians will never forget these words he told the journalist while he was on his way into Parliament, who asked him if he was going to declare military control of Canada - he said: "Just watch me."
Unions don't like secession...
Very clever, I am impressed with the thought that went into the increase of duties on American products to Canada. I am quite interested as to what state makes lawnmowers, motorboats and the political reasoning behind those duty increases …
… Isn't ketchup a John Kerry thing?
I personally would like to see the wood product industry get a boost, by using American lumber [there would still Canadian imported lumber just not to the extent it is at this time] - the Northwest's tree are dieing and creating fuel for wild fires .. when the forest could be made healthy again through clean up and selective cutting .. creating jobs for American workers while putting 'our healthy' trees back to work fighting climate change..
I must promote Made in the USA products … Blue collar workers have made this nation what it is. I realize technology is taking jobs away, but is not reason enough for the US to continue to give jobs away … do I support a tit for tat tariff war, NO … but I do support American workers and the products they make. As a welder for many many years, it was a pleasure to receive American made steel to work with!
I am done preaching!
I think China and other countries are and will do the same thing. Today the with technology countries can target the countries politicians political bases area more than they do the masses. So, ironically, Thump's followers may be the ones to pay the most in America.
PS: We do the same to other countries (especially with sanctions) so this is nothing new.
Agreed steve.. I am waiting to see if China messes with the Rare Earth minerals the US so desperately needs for most all technology produced today - even the militaries defense technology (especially planes) needs the Rare Earth minerals and China has the production market cornered (to my knowledge the US no longer even mines Rare Earth minerals)
P.s... I am not a fan of sanctions - the people of the countries 'we' sanction are the ones that suffer .. all these sanctions against Russia and Russian business etc … but Putin is not sanctioned, as 'we' still trade with Russia, thus Putin is needed - politics at its finest!
Rare earths are a great example of China playing a long game, while America sets its policies for internal political motives, and for the greater profit of the already-rich.
China's near monopoly is not due to geography . The US has similar deposits. China invested in their extraction and refinement. The US did not.
The extraction and refinement is a complex process .. China was smart to attract the businesses/technology it need to complete the refinement to China. The mining, extracting and refinement is all in the same place - whereas the US would outsource part of the process (my speculation) rather than try and entice the business to the US.
Think I read in Foreign Affairs (yes I have the magazine delivered) that China monopolizes 95% of Rare Earth mineral production..
Yes. But only because they made the strategic decision to do so. There's no geographic reason.
I can just imagine a President asking Congress for a few hundred million dollars every year for a decade... with no immediate return.
The US government is terrible with money .. if there was a way to get DC to focus, and do what is best for the future of America, that few hundred million a year would be nothing but a thing .. instead politicians are getting rich while in public service, doing what is best for them personally (?) ..
Harley-Davidson is a much bigger deal than a little yoghurt!
Harley-Davidson was founded in Milwaukee, Wisconsin in 1903. Our corporate headquarters stand on the site where the first factory was built in the backyard of the William C. Davidson family home.
But how can we explain General Motors?
General Motors Says Trump’s Tariffs Could Threaten US Jobs
Obviously, the consequences may be dire. Or maybe just "bad". We don't know. Nobody knows.
Roll the dice!
From my vantage point here in the Mountains of Montana - the sky is not falling, and I doubt that it will be anytime soon.. perhaps American business should hang on for a wee bit before running around all Henny Penny like?
I happen to recall when the wood products industry was crushed in the Northwest due to the Spotted Owl, environmentalists and NAFTA - now 'our' trees are dieing - and the government is crying about the expense of wild fires (?) fascinating stuff for sure - blame climate change for a man made problem (?) .. take a deep breath [do not hold it, as that may be scary] but try to relax. Remember businesses did not build that, they owe everything to government... : )
Harley will / can stayed headquartered in Milwaukee as it becomes a multinational company [it already had one foot out the door before the 'tariff wars'] as GM headquartered in Detroit is already a multinational company doing business in at least 5+ countries .. weakening competitiveness is 'speculation' of the sky falling due to 'tariff wars'
As much as I disapprove of what is happening in federal government at this time … I cannot run in circles like a chicken with my head cut off screaming the sky is falling - remember when America was doomed due to the housing market / financial crash of 2008 / 2009 (?) "We the People" kept the nation afloat creating 'our' own recovery through hard work and dedication to 'our' nation - if I recall, 'we' bailed GM and Chrysler out!(?)
As Bob says, "Roll the dice" … or one could spin the Roulette wheel...
Why is this happening?
Why is what happening?
If I am guessing correctly - all I can say is fear mongering sells, it can be used as leverage over people in order to get them to see things a specific way... if enough leverage can be obtained and applied will the current President back off the 'tariff war' as he did with the separation of families at the border? (even if it is just a feel good moment)
OK. We agree. I wasn't at all sure I understood your dithyrambic writing style...
Yes. But only because they made the strategic decision to do so. There's no geographic reason.
I can just imagine a President asking Congress for a few hundred million dollars every year for a decade... with no immediate return.
I believe that most Americans are unaware of the secret battle going on for rare earth metals between the US and China with Afghanistan being the battle ground.
Fairly good article on it attached.
America has no need to go elsewhere for Rare Earths. There are sufficient deposits at home .
The difference is that China made a long-term decision many years ago, to invest in developing its resources. America, driven by "maximize short-term shareholder dividends" CEOs, does no know how to make long-term decisions.