The first volleys of a Canada-U.S. trade war were fired Thursday, and the Trudeau government shot back with a threat of special tariffs on wide array of American-made products including mayonnaise, sleeping bags, toilet paper and quiche.
Prime Minister Justin Trudeau slammed U.S. President Donald Trumpās decision to slap tariffs on Canadian steel, calling the move ātotally unacceptable.ā Effective midnight, Canadian steel transported over the U.S border will face a 25 per cent tariff and aluminum will face a 10 per cent tariff.
Canada responded by matching Trumpās tariffs with countermeasures on similar steel and aluminum products shipped from the U.S. Those measures would take effect July 1 unless the U.S. retracts its tariffs, Foreign Affairs Minister Chrystia Freeland confirmed.
But Canada went even further, threatening a 10 per cent surtax on a vast selection of products that do not appear to contain steel or aluminum. The taxed goods include candy, condiments, alcohol, toiletries, cleaning supplies, camping gear and boats.
The products on Canadaās list account for up to $16.6 billion in American-made goods.
Some of the most notable products include:
- Inflatable boats
- Toffee
- āPizza and quicheā
- Playing cards
- Tablecloths and serviettes
- Roasted coffee (but not decaffeinated)
- Whisky
- āTomato ketchup and other tomato saucesā
- Maple syrup and maple sugar
- āPrepared meals, of bovineā
- Yogurt
- Sailboats, with or without a motor
- Sleeping bags
The list, also includes dozens of varieties of steel and aluminum products, including wire, beer kegs and railway tracks.
But the list isnāt final, Freeland told CTVās Power Play on Thursday. The government has launched a 15-day consultation period to hear feedback on the proposals.
āWe expect the consultation to have an impact on the list. Thatās why we consult,ā Freeland said Thursday.
Items on the list were strategically chosen to not cause harm to Canadian industries, Freeland said. Everything on the list can be replaced with products made in Canada or from other countries, and the list focuses on finished products rather than items that would be used by Canadian manufacturers.
Freeland pointed out that 50 per cent of American steel exports go to Canada, calling her governmentās countermeasures āmeaningful.ā
Steel and aluminum exports are significant to Canadaās economy. Every year, Canada produces about 13 million tonnes of steel and 3.2 million tonnes of aluminum. Together, the two industries account for $26 billion of sales.
About half of Canadaās steel and 80 per cent of aluminum is exported to the U.S.
The trade spat comes amid ongoing NAFTA negotiations between Canada, Mexico and the United States.
In announcing the tariffs on Thursday, U.S. Secretary of Commerce Wilbur Ross noted that Canada and Mexico were initially exempted from Trumpās tariffs. However, Ross said NAFTA talks are ātaking longer than we had hopedā and said āthere is no longer a precise date when they may be concluded.ā
Trudeau has spoken with the premiers on Saskatchewan, Ontario and Quebec, which all rely on steel and aluminum.
The Prime Ministerās Office said they all agreed to ācontinue to defend the Canadian steel and aluminum industry from unwarranted tariffs and to stand up for the best interests of all Canadian workers and businesses."
With files from The Canadian Press
