WASHINGTON: Canada said it will announce yesterday its response to President Donald Trump’s new tariffs, as neighbours that used to be close allies spiral into a trade war.
In response to what it called “these challenging times,“ the Canadian government said Monday night that the ministers of finance, industry, labour and other officials would hold a press conference in Ottawa to detail Canada’s answer to the new levies.
Canada and the US failed Friday to reach a deal to avert new 50% US tariffs on select Canadian goods after weeks of talks. The duties took effect Saturday, and Ottawa laid out plans for retaliation.
Trump added Monday that he would double tariffs on Canadian autos starting next year to 50%.
The current US tariff impacting Canadian autos stands at 25% for non-US content, while imported steel to the US generally faces a 50% duty. US automakers did not immediately comment on the matter.
After rejecting what he called a “bad deal,“ Canadian Prime Minister Mark Carney announced retaliatory tariffs effective Sept 8.
He said these will target US steel and dairy industries, while also covering sectors like agricultural equipment, paper and electronics.
The government statement released late Monday said ministers will “announce new measures to protect and support Canadian workers and businesses during these challenging times.”
Carney said Monday that the goal of trade talks with Washington “has always been to get the best deal for Canadians, never a deal at any price or on any time frame.”
“We learned that, during the negotiations, the Americans wanted to destroy our major industries – including the automotive, steel, and aluminum sectors – through unfair negotiating terms. And that is one of the main reasons why we said no.”
He stressed that building domestically and diversifying trade abroad has been “plan A from the start.”
Over the weekend Carney added that, at the 11th hour, US negotiators also sought restrictions on Canadian trade deals with other countries.
US negotiators made unacceptable “threats” to the French language and “Quebec culture” too, he said, referring to eastern Canada’s French-speaking province.
At a separate event Monday, however, US Vice-President JD Vance blamed Canada’s “unreasonable last-minute demands.”
The US is by far Canada’s biggest trading partner, with Canadian exports to its neighbour representing 70% of its overall total.
Canada is the US’ second biggest trading partner in goods this year, behind Mexico, government data showed.
Three in four Canadians support the Carney government’s decision to walk away from trade talks, according to polling released Sunday by the Angus Reid Institute.
However, the research group noted that two in five Canadians have some fear about their jobs.
Ontario Premier Doug Ford criticised Trump’s tariff threat on autos.
Ford warned that an electricity surcharge was on the table. In an earlier phase of the dispute, Ontario imposed a 25% surcharge on electricity exports to three US states.
Trump lashed out at Ford online, warning of “far worse” consequences.
The latest duties hit about 5.5% of Canadian goods entering the US, worth some US$20 billion (RM81 billion), impacting products like hockey sticks and cement.
Trump charged Monday that “Canada has been ripping off the US for years,“ adding “we don’t need Canada, they need us.”
Washington was also ready to cut steel tariffs from 50% to 25% for most Canadian steel, said US Trade Representative Jamieson Greer. – AFP
