Elochukwu Benjamin
Awka
The United States has imposed a 50 per cent tariff on about 20 billion dollars worth of Canadian goods after negotiations between the two countries failed to produce a trade agreement before the deadline.
The tariffs, which took effect on Saturday, affect about five per cent of Canada’s annual exports to the United States, including products ranging from hockey sticks to wooden tongue depressors.
In response, Canadian Prime Minister Mark Carney announced that Canada would impose matching tariffs on affected U.S. goods.
“Canada will match those tariffs dollar for dollar to protect our workers and businesses,” Carney said.
The latest move marks a significant escalation in trade tensions between the neighbouring allies and raises fresh concerns about the future of the United States-Mexico-Canada Agreement (USMCA), the regional trade pact that underpins commerce across North America.
According to a senior U.S. administration official, Canada sought concessions on existing American tariffs on steel, aluminium, automobiles and lumber, but Washington declined those requests.
U.S. Trade Representative Jamieson Greer said Canada failed to conclude a deal under terms that had been discussed earlier in the week, adding that new demands from Ottawa disrupted the negotiations.
Carney, however, blamed the collapse on last-minute changes to the U.S. proposal, describing them as unfair and economically unacceptable. He said he had suspended negotiations and ordered Canada’s trade team to return to Ottawa.
The Canadian leader also announced plans to unveil additional support measures for workers and businesses affected by the tariffs.
The tariffs had originally been scheduled to take effect earlier in the week, but the United States extended the deadline by three days to allow further negotiations.
Trade between the two countries remains one of the largest bilateral economic relationships in the world, with goods and services worth about 880 billion dollars exchanged last year.
Culled from YahooNews
