Canada, as one of the most important allies of the United States, expressed its dismay yesterday, on May 31, on knowing that it had not been removed by the US from the list of countries for additional 25 per cent tariffs on steel and 10 per cent on aluminium. Canadian Foreign Minister Chrystia Freeland declared that the country would counterattack the US with stiff tariffs on C$16.6 million worth of US exports and challenge its aluminium and steel tariffs under the North America Free Trade Agreement’s (NAFTA) Chapter 2 and the World Trade Organization (WTO). Mexico and the European Union would also follow Canada and impose heavy retaliatory duties on imported American products, as they could not secure a reprieve from the additional tariffs.
The Canadian tariffs are set to go into effect on July 1 until the United States lifts its own measures, Freeland said soon after the Trump Government declared its decision over the aluminium and steel tariffs yesterday.
Commenting on the US’ decision, Canadian Prime Minister Justin Trudeau said on Thursday, May 31, at a news conference in Ottawa with Freeland, “The American administration has made a decision today that we deplore, and obviously is going to lead to retaliatory measures, as it must.” “We regret that. We would much rather move together in partnership.”
The Canadian government released two lists of US products, proposing a 25 per cent tariff on the first list and 10 per cent on the second. The list included a variety of products, including aluminium and steel. It, however, largely spares US farmers.
While discussing NAFTA talks at the conference, Trudeau said Canada, US, and Mexico had come close to a deal that had offered to meet the US President Donald Trump in Washington. All he had to do was to agree to a five-year sunset clause, as a precondition for the meeting, but he refused.
Trudeau said regretfully, “There was the broad line of a decent win-win-win deal on the table.”
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