Canada announces retaliatory tariffs including against Yogurt made in Wisconsin

Canada moves ahead with $16.6 billion in tariffs on U.S. products as trade war heats up

Canada moves ahead with $16.6 billion in tariffs on U.S. products as trade war heats up

The measures targeting 16.6 billion Canadian dollars ($ 12.6 billion) in U.S. steel, aluminum and consumer goods will take effect on Sunday when Canadians across the country will be celebrating a national holiday and just days before Americans celebrate their independence.

Prime Minister Justin Trudeau's government released the final list of items that will be targeted beginning July 1. Starting on July 1 most of the items will be taxed at rates of 10 percent or 25 percent.

She also said Canada was in discussions with Mexico and allies in Europe, which have also retaliated against the U.S. imposition in June of 10 percent tariffs on aluminum and 25 percent on steel.

Jim Watson, a Liberal Party politician serving as Ottawa's mayor since 2010, told reporters Thursday that he's boycotting the US ambassador's annual Independence Day party over the Trump administration's recent anti-Canadian sentiments.

Freeland said there are no grounds for further United States tariffs in response to Canada's actions.

Trudeau and U.S. President Donald Trump spoke late Friday.

Foreign Affairs Minister Chrystia Freeland also announced $2 billion in funding to support workers and businesses in the steel, aluminum and manufacturing sectors. "Our approach is that we will not escalate, but equally, we will not back down", Freeland said. "This is a perfectly reciprocal action".

Freeland said there were "absolutely no grounds" for a US tariff on autos, but said the government was prepared for all possible outcomes.

Canada and Mexico initially were exempted from the U.S. metals tariffs - as was the European Union - but Mr Trump allowed the duties to take effect on June 1 after talks stalled to revamp the 1994 trilateral North American Free Trade Agreement (Nafta).

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She said she expects "common sense will prevail". "It would change the calculus", he said.

"Faced with these unjustified tariffs, the United States will take all necessary actions under both US law and global rules to protect its interests", he said in the statement. "Working in partnership with industry and business associations, we will provide capacity support to assist Canadian companies tap into the new markets now uniquely open to them in Europe, Asia and around the world".

"I think that prediction has been borne out and I think all of us anticipate there will be some moments of drama in the future".

Alberta's steel and aluminum production is relatively small, with exports of $500 million worth of steel going to the US each year but there are concerns over how an escalating trade war could affect the province's energy and agricultural industries.

He's already threatened to escalate the trade war by imposing a ruinous tariff on the Canadian auto industry that could cost thousands of jobs. And at the end of the day, Ujczo added the Trump administration's overarching objective of the talks has been to stop Canada and Mexico from being the back door to North America for Chinese goods, like steel.

Freeland said an "intensive phase" of NAFTA renegotiations will resume quickly after Sunday's elections in Mexico.

Canadian steel is used in American tanks, and Canadian aluminium is used in American planes. "They are prepared for this", said Dan Ujczo, a trade lawyer in Columbus, Ohio.

Canada has been pursuing trade deals with other nations, and is staying well connected with political and business networks in the U.S. Paul Moen, an worldwide trade lawyer at Earnscliffe Strategy Group in Ottawa, says the Canadian government has also promised to step in to help industries like dairy and steel.

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