Canada’s government has announced a further C$29.8 billion ($32.8 billion) in retaliatory tariffs against the United States as the trade war between the two neighbouring countries deepens.
The new 25 per cent tariffs come a day after US President Donald Trump announced — and then rescinded — a doubling of tariffs against Canadian steel and aluminium imports from 25 to 50 per cent.
Canada is the biggest foreign supplier of steel and aluminium to the United States.
In the latest tranche of tariffs, announced in response to Mr Trump’s levies against all international imports of steel and aluminium, would target steel and aluminium imports from the US.
Canada’s retaliatory tariffs target steel products worth C$12.6 billion ($13.9 billion) and aluminium products worth C$3 billion ($3.3 billion).
Canadian Prime Minister Justin Trudeau has been critical of the US’ tariffs. (AP: Sean Kilpatrick/The Canadian Press)
A further C$14.2 billion ($15.6 billion) of American products such as computers, sports equipment and cast iron products would also be subjected to increased import levies.
Tensions between the US and Canada have been worsening after Mr Trump announced plans to levy tariffs against Canadian imported products in February, which came into effect in March.
Canada’s latest counter-tariffs came after Mr Trump made good on his promise to levy 25 per cent tariffs against all imports of aluminium and steel into the US.
Australia, which had been angling for an exemption, was not spared, with Prime Minister Anthony Albanese describing the move as “not a friendly act”.
Former Australian Ambassador to the US Arthur Sinodinos said there was likely nothing the Australian government could have done to get an exemption.
British Prime Minister Keir Starmer said he was “disappointed” to see tariffs imposed on UK goods, but did not announce any reciprocal levies on American steel and aluminium.
“We are … negotiating an economic deal which covers and will include tariffs if we succeed, but we will keep all options on the table,” he said.
The EU announced on Wednesday it would levy $45 billion in tariffs against US industries in response to Mr Trump’s tariffs on metal imports.
Mexican President Claudia Sheinbaum said Mexico would not respond to Mr Trump’s steel and aluminium levies with counter-tariffs until at least April 2.
The escalation of the US-Canada trade war occurred as Prime Minister Justin Trudeau prepared to hand over power this week to his successor Mark Carney, who won the leadership race of the ruling Liberals on Sunday.
Mr Trump on Tuesday again publicly floated the idea of Canada becoming the fifty-first state of the US.
Reuters