+34
Counter-tariffs cover $20bn of US goods, with duties ranging from 15% to 50%
Canada’s retaliatory tariffs on US goods took effect just after midnight on Tuesday as prime minister Mark Carney increased economic pressure on his country’s biggest trading partner after negotiations collapsed last month, intensifying an 18-month-old trade war.
The counter-tariffs cover $20 billion of US goods, with duties ranging from 15 per cent to 50 per cent across products from steel and furniture to clothing and electronics. The dollar-for-dollar retaliation marks an escalation in the dispute between the neighboring countries, and US and Canadian officials have traded blame for scuttling a deal that seemed close to fruition two weeks ago.
The rising tensions create uncertainty about the broader US-Mexico-Canada free trade agreement, which is up for annual reviews after US president Donald Trump declined to extend it for another decade.
“What we are worried about is an escalatory spiral,” said Michael Harvey, executive director of the Canadian Agri-Food Trade Alliance and a member of Carney’s advisory committee on bilateral US economic relations. Ronan and Conor Burke: ‘Suddenly, every financial institution needed a solution to a problem we had spent years preparing to solve’ “But at the same time, we totally understand that the prime minister needs to find areas of leverage,” Harvey said.
Trump’s tariffs implemented last month hit sectors including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment, covering $20 billion, or 5 per cent, of Canadian exports to the U.S. According to Canadian and U.S. government data, Canada has shipped almost 68 per cent of total exports to the U.S. this year, out of which roughly 80 per cent moved duty-free due to exemptions under the USMCA pact. Protections under the agreement have provided the domestic economy some resilience.
The new tariffs, imposed under a Depression-era U.S. law, do not allow Ottawa to exercise USMCA exemptions. Concerns about the USMCA’s future have fuelled uncertainty about investment and growth, as Canada wages a trade war against an economy 13 times its size. Polls show Carney has broad support from Canadians, but it could disappear within months as the consequences of the trade war sink in, according to political analysts.
Just 20 per cent of Americans approved of Trump’s tariffs on Canadian goods, a Reuters/Ipsos poll found. Trump threatened last month to raise US tariffs on all cars, trucks and automotive parts from Canada to 50 per cent starting January 1st, and signed an executive order renaming Lake Ontario as Lake America. A government source said there are currently no talks between the two sides among ministers or government officials.
“The Canadian government needs to keep channels open to the United States and not go overboard in terms of rhetoric and reacting to the rhetoric from the American side, while waiting for the American decision-making process to come back to economics,” Harvey said. - ReutersMixed signals before budget as Chambers says income tax cuts to be ‘modest’Gardaí investigating possibility that teenager deliberately knocked off e-bike in Co ClareNew rules for Irish citizenship: How will they work?
Rise in child poverty; Ireland’s most prosperous town; and the Irish unity debateTwo months after receiving half a shed from Homebase, customer’s patience is wearing thin
Trump-Presidency Mark-Carney Canada Trade
Ireland Latest News, Ireland Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
Wout van Aert Wins Shortened Vuelta StageBelgian rider Wout van Aert claimed victory on stage 15 of the Vuelta a España, winning a sprint from a small breakaway group. The stage was shortened due to extreme heat, with temperatures exceeding 40°C. General classification leader Enric Mas maintained his lead over Felix Gall and Primož Roglič.
Read more »
Day-tripping: how to spend 15 hours sightseeing in LondonFrom Anthony Bourdain’s favourite coffee haunt to Ronnie Scott’s Jazz Club and St Paul’s Cathedral, the city offers a world in a day
Read more »
Fourth man arrested in fatal brawl death of Siminic Rostas in DublinA fourth man in his 30s has been arrested by Gardaí investigating a fatal brawl at an abandoned premises housing about 15 members of the Roma community, which led to the death of Siminic Rostas (24). A third man, Augustin Rostas, appeared in court and was granted conditional bail. The arrested man was released without charge pending a file for the Director of Public Prosecutions. Another victim who suffered stab wounds was treated and released from hospital.
Read more »
People urged to join national walkout highlighting violence against womenCampaign organiser explains what lies behind hopes for a 15-minute exodus from schools, colleges and homes
Read more »