Global Trade Tensions Rise As Canada Announces Retaliatory Tariffs Against The US

Washington: The trade tension between America and Canada has now openly turned into a trade war. After the failure of long-running trade negotiations, both countries have started taking tough measures against each other. America has decided to impose 50 percent tariff on about 20 billion dollars' worth of goods coming from Canada. In response, Canada has also announced the imposition of retaliatory duties on American products.

Canadian Prime Minister Mark Carney said that his country will respond to America's new tariffs in the same proportion. He clearly said that Canada will take necessary steps to protect the interests of its workers, farmers, families and businessmen. Canada's retaliatory tariff action is said to begin on September 8.

Did talks fail between both countries?

No agreement could be reached in the last round of trade talks held in Washington. After this the US and Canada blamed each other for the failure of the talks. Carney said that some of the US demands were not possible for Canada to accept.

He alleged that Washington imposed last-minute conditions that could have reduced relief for Canada's auto sector and affected Canada's ability to make trade deals with other countries.

Will many sectors be affected?

US tariffs may impact many important Canadian products. These include furniture, dairy products, cement, clothes and sports goods. At the same time, Canada's retaliatory action may affect America's steel, dairy, home appliances, agricultural machinery, pulp-paper and electronics sectors.

Mark Carney said that if the US reduced its tariffs, Canada could also consider removing some retaliatory tariffs related to the steel, aluminum and auto sectors. However, in the current situation, there seems to be little possibility of any new talks between the two countries.

Has sourness increased in relations between old colleagues?

The United States and Canada have long been close allies and major trading partners. But the new tariff dispute has created a deep rift in the relations between the two countries. This conflict may also affect the future of the US-Mexico-Canada trade agreement.

Prime Minister Carney said that Canada will now have to accept that the status of its old relationship with America has changed. On the other hand, the Trump administration says that its steps are aimed at protecting American workers and domestic industries.