• 139 days Could Crypto Overtake Traditional Investment?
  • 143 days Americans Still Quitting Jobs At Record Pace
  • 145 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 148 days Is The Dollar Too Strong?
  • 149 days Big Tech Disappoints Investors on Earnings Calls
  • 150 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 151 days China Is Quietly Trying To Distance Itself From Russia
  • 152 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 155 days Crypto Investors Won Big In 2021
  • 156 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 157 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 159 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 159 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 162 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 163 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 163 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 165 days Are NFTs About To Take Over Gaming?
  • 166 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 169 days What’s Causing Inflation In The United States?
  • 170 days Intel Joins Russian Exodus as Chip Shortage Digs In
  1. Home
  2. News
  3. Breaking News

Canada Hits Back At U.S. With $12.5 Billion In Tariffs

Canada

Canada has now hit back at U.S. President Donald Trump by issuing tariffs worth $12.5 billion on dozens of U.S. products in retaliation for American steel and aluminum tariffs imposed one month ago and effective as of yesterday.

Aside from a long list of nearly 80 items—including everything from whisky, lawnmowers and yogurt to ketchup and maple syrup--U.S. steel products now face a tariff of 25 percent, while a vast array of aluminum products will now cost Canadian importers 10 percent more.

Canada’s tariffs aren’t just a threat: They went into effect Sunday.

It’s an exact tit-for-tat, and everyone knew it was coming.

After all, Canada was the largest exporter of steel to the United States by value last year, making it one of the countries to be most hurt by Trump’s trade tirade.

Now, the friendly neighbor to the north is one of America’s worst relations, despite the fact that Canada is the U.S.’ second-biggest trading partner in goods, just behind China.  

Publicly, Trump has claimed that trade with Canada is unfair, though some maintain that the U.S. saw an overall trade surplus with Canada last year to the tune of $2.7 billion.

During the G7 in Toronto, he said the U.S. ran an $817-billion trade deficit, but the administration’s Census Bureau and Bureau of Economic Analysis says the deficient was $568 billion. Related: “Father Of The Web” Fights Back Against Internet Centralization

There’s also been some fact-checking over which numbers are being used and which are being left out. It’s been pointed out numerous times that Trump also relies only on trade in goods, not services. This makes the trade deficit looks much worse. While the U.S. bought $811 billion more in goods from other countries than they bought from the U.S., there was a surplus in American trade services.

It is also this selective use of numbers that justifies Trump’s claim of a trade deficit with Canada: There is a deficit of in the trade of goods, but a large surplus in the trade of services, which leaves us with a $2.7-billion overall trade surplus with the northern neighbor.

Now Trump is waging a war on the auto industry, threatening a 25-percent tax on automobiles imported into the U.S. from Mexico and Canada, and a 20-percent tax on all European cars coming in.

It’s another attempt to gain leverage, but it hasn’t worked so far. The only result to date has been retribution from around the world.

The auto trade war may be even bigger—and even more unsettling—than the one over steel and aluminum.

“I’m going to tax their cars coming into America and that’s the big one. You know, the cars are the big one. We can talk steel, we can talk everything: The big thing is the cars,” Trump recently stated.

In May, Trump ordered a national security probe into vehicle imports, which could bring tariffs on autos and auto parts.

The European Union said that if tariffs on auto imports are implemented it could lead to  retaliation against some $300 billion in U.S. goods.

The auto industry is up in arms, with experts and carmakers alike saying the entire North American industry could be irrevocably harmed.

Even the U.S. Chamber of Commerce is launching a campaign to oppose Trump’s tariff policies, and it’s a lobbying behemoth that could possibly step in to save the day.

"The administration is threatening to undermine the economic progress it worked so hard to achieve," said Chamber President Tom Donohue in a statement to Reuters. "We should seek free and fair trade, but this is just not the way to do it."

By Fred Dunkley for Safehaven.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment