The United States has announced a 35% tariff on a wide range of Canadian imports, significantly escalating trade tensions between the two neighbouring countries. The new obligations will apply to products used in daily life, including, wine, hockey sticks, industrial products such as cement. The new tariffs, however, have been waived for several crucial Canadian exports like energy, potash, critical minerals and fish.
The tariffs will be implemented in 30 days, according to the White House.
Canadian PM Mark Carney slammed it, calling it an “other unilateral trade measure by Washington.” There’s no reason to limit the scope of the negotiations with the US in the next few weeks, he said, “on the contrary”.
Additionally, Carney mentioned that the tariff annuls the U.S.-Mexico-Canada Agreement (USMCA) and talks about persisting worries about Canadian sovereignty.
The new duties have been levied under a different US law, alongside without the allure of emergency powers that have been used in the past to levy tariffs, and it hasn’t yet been challenged in court.
The new measures will come on top of other trade restrictions between the two nations. Canadian steel and aluminium is already 15% to 50% taxed by the U.S., copper is 15%-50%, softwood lumber is 35% and non-U.S. auto parts 25%.
Canada, too, has been imposing its own 25% counter-tariffs on certain American steel, aluminium and vehicle imports in response to previous trade actions by the United States.
The latest flare-up is a sign of lack of clarity over North American trade relations while diplomatic efforts are still underway to resolve the issue.