Canada imposed retaliation for 20 billion USD of US goods

Canadian retaliation measures applied to products imported from the US, including: steel worth 12.6 billion CAD (US $ 8.7 billion), aluminum worth 3 billion CAD (2.1 billion USD) and other goods worth 14.2 billion CAD (US $ 9.8 billion) such as computers, sports equipment, cast iron products.

Canadian Finance Minister Dominic Leblanc said the decision to respond to aluminum and steel tax by US President Donald Trump took effect from Wednesday (March 12). Canada is currently the largest supplier of steel and aluminum for the US.

US -Canadian trade tensions have recently increased. In early February, Mr. Trump signed an order to impose import tax on all Canadian and Mexico goods. From March 4, this tax takes effect. Except for Canadian energy with 10%tax, other products from these two countries are 25%.

Canada immediately responded by applying 25% tax with 30 billion US cad. A total of 1,256 affected products include orange juice, peanut butter, wine, beer, coffee, household appliances, clothes, shoes, motorbikes, cosmetics, wood pulp and paper.

But a few days later, the United States announced tax delay with cars and products specified in the US – Mexico – Canada Agreement (USMCA) for nearly a month. Canada also postponed the 2nd retirement plan with 125 billion US cad.

On March 11, Mr. Trump said that he instructed the Finance Minister to double the import tax with aluminum and Canadian steel to 50%, in response to the 25% tax on Ontario province with electricity exported to the US from March 10. However, a few hours later, the decision was withdrawn when the Ontario donor said it would suspend the charge surcharge.

Also on March 11, Mr. Trump also threatened “significantly increasing” import taxes on cars into the US since April 2 if Canada did not abolish “other imported import taxes”. The North American trade war escalated in the context of Canadian Prime Minister Justin Trudeau preparing to transfer power to the successor Mark Carney, who has just won the race to lead the ruling party on Sunday (March 9).

On Monday (March 10), Carney said he could not talk to Trump until he officially took office as the Prime Minister. Meanwhile, on social networks, Mr. Trump continues to declare that he wants Canada to “become our beloved 51st state”.