Canada has announced a new strategy in response to a breakdown in negotiations with the United States, implementing a plan to impose reciprocal tariffs on all goods at a dollar-for-dollar level. Announced just before a deadline, Prime Minister Mark Carney stated that Canada would immediately impose tariffs on US goods following a recent agreement that had been ‘very good’ for both nations. The decision follows a week of intense negotiations, with President Donald Trump threatening a 50% tariff on nearly $20 billion in Canadian imports by August 19th. Prior to Carney’s announcement, Trump had temporarily paused negotiations, citing concerns about the terms of a potential deal. Carney said the current situation was ‘unfair, uneconomic,’ and questioned the reliability of the agreement, leading to the suspension of trade talks. The Canadian government will now return negotiations to Ottawa, directing negotiators to revisit the initial terms. Specifically, Canada has announced that it will implement 50% tariffs on steel and aluminum, as well as 25% tariffs on automobiles, and will also reinstate alcohol sales to US stores. The move represents a significant shift in tone from earlier weeks when both sides appeared optimistic about a beneficial trade agreement. Negotiators were reportedly discussing a deal that would reduce US tariffs on Canadian steel and aluminium, and on Canadian autos, and would also include a ban on US alcohol sales imposed last year by Canada. The US Chamber of Commerce has warned that these new tariffs could harm both economies, increase costs for American families, disrupt supply chains, and risk job losses, particularly in sectors reliant on trade under the US-Mexico-Canada Trade Agreement. A recent Abacus Data poll showed that approximately 36% of Canadians support retaliatory tariffs, while 30% would want the Canadian government to continue negotiating. The US has expressed its desire for concessions, including removing remaining retaliatory tariffs and adjusting dairy quotas, and has also requested a ban on US alcohol sales to be removed. Trump stated that the US is ‘not going to tolerate’ counter-tariffs, and that the US Chamber of Commerce has indicated that higher tariffs would damage both economies. Carney said that the new tariffs will be in effect on a range of goods, including wine, dairy, cement, clothing, and hockey equipment. The situation has intensified tensions between the two major trading partners, with both countries arguing that the new tariffs are harmful to their economies and businesses. The US has also asked for a reversal of the tariffs imposed by Trump, and the US Chamber of Commerce has said that increased tariffs will damage both economies.” , ]}} “tags”: [
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Source: BBC News
