Canada strikes back with counter-tariffs on US aluminium goods

Canada has declared $2.7 billion tariffs on US aluminium products following the day after US President Donald Trump imposed a 10% tariff on some Canadian aluminium products.

However, Canada and the USA outstretched a deal last year to lift tariffs on aluminium imports that had been enforced on grounds of national security.

On 6^th August’20, Trump administration reinstituted them to protect the US industry.

The retaliatory tariff declared by Canada will start its effect from 16^th September’20. The counter steps were made public after Deputy Prime Minister Chrystia Freeland formerly promised a "dollar-for-dollar" fight.

She said: "At a time when we are fighting a global pandemic. A trade dispute is the last thing anyone needs - it will only hurt the economic recovery on both sides of the border.”

Ms Freeland called the US tariffs "ludicrous" and denied Canadian aluminium is a threat to US national security.

"Any American who buys a can of beer or a soda or a car or a bike will suffer. In fact, the washing machines Trump stood in front of yesterday will get more expensive," she said.

The tariffs would come into force after a consultation period with Canadian businesses affected by the US levy.

Speaking in Ohio on Thursday, Donald Trump said: “US tariffs on Canada were necessary to defend the domestic aluminium industry because producers to the north had broken their commitment to stop flooding the US market with a cheaper product.”

“The step was necessary to defend our aluminium industry," he said.

As part of a 2019 agreement lifting the measures, the US and Canada said they would monitor imports and, if a country is determined to be buying in too much, one of the other nations could request a consultation and potentially reimpose tariffs.