In response to the recently imposed U.S. tariffs on steel and aluminum, Canada, joining NAFTA partner Mexico, announced Sunday its own tariff increases on a variety of U.S products that come into Canada.
The duties are on a list of U.S. products which were imported to Canada last year in the amount of $12.6 billion. The products affected include foodstuffs like ketchup, coffee and whiskey as well as household appliances like refrigerators and dishwashers. The Canadian press release announcing the moves indicated these were measured steps to make up for the loss of revenue expected to result from the U.S tariffs on steel and aluminum and would remain in place until the U.S. lifts its recently imposed additional duties.
The Canadians also made special mention of the the fact the the U.S. maintains a $2 billion trade surplus on steel and aluminum products with Canada. Canada claimed it buys more American steel than any other country in the world and accounts for 50% of U.S. exports.
Canada seems to be adopting a similar response to the EU approach in responding to the U.S. tariffs on steel and aluminum. In both cases, these major trading partners and allies are rejecting the claim that this trade poses risks to U.S. security and are taking steps in the World Trade Organization to seek reversals of U.S. trade tariffs as well as imposing retaliatory measures.
We are now seeing these responses impacting U.S. exports. While the U.S Administration is exploring a further imposition of tariffs on China in response to its retaliation against U.S. tariffs, we are awaiting a further response with respect to the EU, Canada and Mexico. We will continue to keep you advised.