Canada 'will not back down' over U.S. metals tariffs

Canada 'will not back down' over U.S. metals tariffs

Canada has announced billions of dollars in retaliatory tariffs against the United States in a tit for tat response to the Trump administration's duties on Canadian steel and aluminium.

Darren Green, the president of the Hamilton Steelworkers Area Council in Hamilton, Ontario, was angry when President Trump placed tariffs on Canadian aluminum and steel, and backs Prime Minster Justin Trudeau's decision to go ahead with retaliatory tariffs.

Aside from reciprocal tariffs on steel and aluminum imports from the USA, the items to be subject to 10 per cent duties come from a wide range of sectors - from ketchup, to lawn mowers, to playing cards. Canadian foreign minister Chrystia Freeland said they had no other choice and called the tariffs regrettable.

Food and consumer items - everything from dishwashing liquid and powerboats to yogurt, ketchup and whiskey - will face 10 percent tariffs.

Though Canada's response may well be measured and balanced, "Mr. Trump doesn't think we should respond at all", Ryder added. "I don't want to show up to something that I don't feel comfortable with from a principle point of view of seeing what's happening with these constant threats to our steel industry, aluminum, our vehicle industry, the dairy industry, and I've sent my regrets".

The list of products is meant to match "dollar for dollar" the United States tariffs, which came into effect on 1 June, Ms Freeland said.

Hamilton will be the backdrop for an announcement on the Canada US trade dispute.

The levies will remain in effect until the USA eliminates its tariffs on Canadian steel and aluminium.

The retaliatory trade measures were first revealed in May but federal officials delayed their implementation until July 1 to get feedback from Canadian companies.

The US is also exposed to thousands of potential job losses, as higher costs for steel and aluminium hurt US firms and trigger retaliation from Canada and elsewhere.

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"We will not escalate, and we will not back down", she said.

Through its strategic innovation fund, Ottawa is also offering up to $250 million in support in an effort to reinforce the competitiveness of Canadian manufacturers and strengthen the integration of Canada's steel and aluminum supply chain.

"I don't think we'll see any reaction from the Trump administration".

The list adds up to about $12.6 billion USA of goods - the equivalent of the value of Canadian items hit by US tariffs. "If you want to change it you have to make serious proposals, but you don't just walk away", he said.

Media captionDairy wars: Why is Trump threatening Canada over milk? Bains, the economic development minister, said Friday that the feds are consulting with industry so even more can be done to address the diversion and dumping of aluminum and steel in the Canadian market. But domestic businesses, particularly those in the steel sector, have expressed deep concerns about any escalation in the trade battle. In addition, the government will help affected workers through the Employment Insurance program.

The U.S. embassy in Ottawa said it had no immediate comment. "That includes new extended work-sharing, to help employers avoid layoffs, and increased capacity for job and skills training programs for any workers who need them".

Increasing funding to the provinces and territories to increase the capacity of the job and training programs available to workers affected by the US measures. The United States is also the top destination for Canadian vacationers, who made 42 million trips to the USA in 2017.

On the campaign trail this week, Trump continued his attacks on Canadian dairy, wheat and duty-free customs allowances for Canadians returning home, saying they were scuffing up brand new shoes in order to sneak them in.

The government also plans to invest $50 million over five years to help firms take full advantage of recent trade agreements, including Canada's deal with the European Union and its membership in the Trans-Pacific Partnership.

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