Canada Strikes Back at Donald Trump, Imposes Up to 50% Tariff on US Imports

Ottawa: The ongoing trade war between America and Canada has now become more serious. In response to the heavy tariffs imposed by the US on Canadian goods, Canada has also imposed retaliatory tariffs of 15%, 25% and up to 50% on American products. The new system has become effective from September 8. According to the Canadian government, about $27.6 billion worth of goods coming from America will be affected by these tariffs.

Which American goods will be subject to 50% tariff?

Canada has set tariffs on different categories of American products. Tariffs of up to 50% have been imposed on some steel and aluminium products along with furniture and clothing and apparel. At the same time, 25% duty will be applicable on some home appliances, dairy products and steel-aluminium-related products. Canada says that the rates of the American products on which this retaliatory action has been taken have been kept largely in line with the duties imposed by the US.

Why did Canada take this decision after America's 50% tariff?

In fact, the administration of US President Donald Trump had decided to impose 50% additional tariff on some products coming from Canada. From the US side, this was based on Canada's trade policies, which Washington considers discriminatory against American companies and products. After the American decision, Canada had also announced to respond at the same rate.

Is America also retaliating now?

After the implementation of Canada's retaliatory tariffs, America has also taken new steps. The Trump administration has announced a ban on the import of dairy products, motorcycles and a large number of alcoholic beverages from Canada. These restrictions will be effective from September 29. Apart from this, it has also been announced to impose 50% duty on some Canadian cheese, paper, aluminium, wood, furniture and lighting products.

Will the trade war affect the economy of both the countries?

The increasing conflict between the two countries has become a matter of concern for business and industries. There is a trade of about 900 billion dollars every year between America and Canada. In such a situation, due to continuously increasing tariffs and import restrictions, the costs of companies may increase and there may be pressure on the supply chain. Its impact can be seen especially on sectors like automobile, agriculture, steel, dairy and manufacturing.

Can any way be found through talks?

Despite increasing tension, the avenues of dialogue between the officials of the two countries have not been completely closed. Canadian Prime Minister Mark Carney has talked about reducing dependence on America and increasing trade with other countries. At the same time, American and Canadian officials are also expressing the possibility of further talks. The biggest concern at the moment is whether this action of tariffs and sanctions increases further or whether both countries try to resolve the dispute through negotiations.