Canada has issued a response after US President Donald Trump decided to slap new 50% tariffs on its North American neighbour.
According to The Guardian, the White House announced on Monday, July 20, that Trump is imposing 50% tariffs on most Canadian goods in response to its retaliation against previous levies.
A US official claimed that the action against Canada was taken over its “continued discrimination” against American cars, alcohol and dairy products.
The White House said the tariff will apply to a wide range of products, including wine, cement and hockey sticks and goods previously protected from import taxes under the United States-Mexico-Canada (USMCA) agreement.
However, energy products, potash, fish, critical minerals and the products that are already subject to tariffs for national security are excluded.
Mark Carney breaks his silence on new tariffs.
Canadian Prime Minister Mark Carney, reacting to the new 50% tariffs announcement, said that the government has outlined a proposal to resolve trade tension with the US while stressing that Trump has violated the trade pact.
He said, “This trade dispute has raised costs for families, particularly in the US. Canada stands ready to engage intensively to address outstanding issues with the US to the mutual benefit of our citizens.”
Carney added that Canada has the “right” to match any tariffs imposed on the country and aimed to take "the necessary actions to support our economy and defend our workers, farmers, businesses and families."
However, he expressed a desire to "modernise" the USMCA to de-escalate trade tension between two countries.
Discrimination against American goods
A senior Trump administration official told NBC News, “Canada has to be held accountable for this continued discrimination (against US goods). The president has asked for options on tariffs in retaliation for recent Canadian wildfires that affected the US, and options are being shared with him.
The White House said the new tariffs will go into effect in 30 days, which means Canada has time to negotiate.
