Washington: Canada announced matching tariffs of up to 50 per cent on $27.6 billion worth of US goods after suspending trade negotiations with Washington, saying the United States had demanded too much while offering too little.
The counter-tariffs will take effect on September 8 and cover steel, dairy products, appliances, agricultural equipment, pulp and paper, electronics and other goods, the Canadian government said on Tuesday.
Ottawa also unveiled a $7.5 billion support package for workers and businesses affected by the escalating trade dispute.
The action follows a US decision to impose a 50 per cent tariff on $27.6 billion of Canadian goods from August 22.
Canada said it would match those duties “dollar for dollar, rate for rate”.
The Canadian tariffs will be set at 15, 25 and 50 per cent, matching the corresponding US rate for each product targeted under American Section 338 and Section 232 tariffs.
“When the United States asked too much and offered too little, we chose to stand up for Canadians,” Finance and National Revenue Minister Francois-Philippe Champagne said.
“Our dollar-for-dollar, rate-for-rate counter-tariffs as well as a multi-billion dollar support package will protect workers, farmers, families, and businesses as we build a stronger, more resilient, and more diversified Canadian economy,” he added.
Goods facing the 50 per cent Canadian tariff include steel and aluminium products previously subject to a 25 per cent counter-tariff, as well as furniture, clothing and apparel.
The 25 per cent category includes appliances, dairy products such as cheese, fish and seafood, and some steel and aluminium derivative products. Existing Canadian counter-tariffs on other US goods, including automobiles, will remain in place.
Canada said it suspended intensive negotiations after the United States proposed new terms that were not in its national interest. Accepting them, the government said, would have harmed Canadian workers, businesses and strategic sectors.
The Canadian government said it had not chosen the trade conflict but needed to restore a level playing field for Canadian companies competing with US products.
“In a more uncertain world, Canada will continue to invest in our greatest strengths: our workers, our businesses, and our capacity to compete,” Industry Minister Melanie Joly said.
“Today’s new measures will protect jobs, strengthen the industries that drive our economy, and secure the supply chains that underpin our prosperity,” she added.
The $7.5 billion assistance package includes another $1.5 billion for small and medium-sized enterprises through the Regional Tariff Response Initiative. It also provides a new $500 million liquidity facility to help businesses facing immediate cash-flow pressures.
Another $2 billion will go to the Canada Strong Diversification Fund for tariff-affected businesses with projects ready to begin.
The Canadian government also announced $3.5 billion in rapid-response support for workers and employers, including income assistance, training and measures intended to help companies retain employees.
Access to tariff-related programmes operated by the Business Development Bank of Canada will be expanded by lowering the minimum revenue requirement for applicants to $1 million. The government is also introducing greater flexibility in its loan facility for large enterprises.
The United States and Canada share one of the world’s largest bilateral trading relationships, supported for decades by tightly integrated supply chains in automobiles, agriculture, energy, steel and aluminium.
Trade disputes between the neighbours can therefore affect manufacturers and consumers on both sides of the border.
(IANS)
