TORONTO – Canada announced on Friday a billions tariff in retaliatory tariffs against the United States in response to the Trump administration's duties on Canadian steel and aluminum .  The government of Prime Minister Justin Trudeau released the final list of articles to be selected from July 1. Some items will be subject to 10 or 25 percent taxes.
"We will not escalate and we will not back down," said Canadian Foreign Minister Chrystia Freeland.
Taxes on items that include ketchup, lawn mowers, and motor boats amount to $ 12.6 billion.
"This is a perfectly reciprocal action," said Freeland. "It's a dollar-for-dollar response."
Freeland said they had no other choice and called the tariffs regrettable.
Many of the American products were chosen for their political rather than economic impact. For example, Canada imports $ 3 million worth of yogurt a year in the United States and most comes from a plant in Wisconsin, the home state of House Speaker Paul Ryan. The product will now receive a 10 percent tax.
Another product on the list is whiskey, which comes from Tennessee and Kentucky, the last of which is the home state of Senate Republican leader Mitch McConnell.
Freeland also said they are ready if US President Donald Trump intensifies the trade war.
"It is absolutely imperative that common sense prevail," he said. "Having said that, our approach from the first day of the NAFTA negotiations was to hope for the best but to prepare for the worst."
Trump explained tariffs on steel and aluminum saying that imported metals threatened the national security of the United States. a justification that countries rarely use because it can be abused so easily. It also threatens to impose another fee based on national security to imported cars, trucks and auto parts. That threat could be a negotiating ploy to restart talks on the North American Free Trade Agreement.
Freeland said there are no grounds for additional US tariffs. UU In response to Canada's measures.
Canadians are particularly concerned about automotive tariffs because the industry is critical to the Canadian economy. Freeland said such tariffs would be "absurd" because the North American auto industry is highly integrated and parts manufactured in Canada often go to cars made in the United States and then sold to Canadians. "Any commercial action is detrimental on both sides of the border," Freeland said.
Freeland said that an "intensive phase" of NAFTA renegotiations will resume quickly after Sunday's elections in Mexico.
"I do not think we'll do it" I'll see any reaction from the Trump administration. They are prepared for this, "said Dan Ujczo, a trade lawyer in Columbus, Ohio." Quite frankly, Canadian retaliation is a drop in the bucket compared to the retaliation we will see in China and elsewhere. "
Ujczo doubt that Trump announced auto rates because that would be a "red line for the United States." Congress "before the mid-term elections.
The United States Department of Commerce will hold hearings on automotive tariffs in late July and will subsequently publish an investigative report on whether they threaten national security.
"I do not think that Congress is currently expected to compromise until after the mid-term elections, they have given the president a long leash and will continue to do so, automatic rates would interrupt that, he would change the calculation," He said.
The Canadian government also announced $ 1.5 billion in subsidies for the Canadian steel and aluminum industries.
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