- Jun 01, 2018 -
Canada will retaliate against new U.S. tariffs and impose trade barriers on U.S. steel, aluminum and other products, foreign minister Stephen friedland said Thursday.
Mr Friedland said Canada would impose a surcharge on steel and aluminium, which would take effect on July 1 and would remain in effect as long as the us did not change its decision.In addition to steel and aluminum tariffs, the north American free trade agreement's partners have proposed import tariffs that would include whiskey, orange juice and other foods.
According to foreign media, Canada will publish a list of tariffs, one for 25 percent and one for 10 percent.Canada will impose retaliatory tariffs of up to c $16.6 billion.
Canadian prime minister Justin trudeau said the tariffs announced Thursday by U.S. commerce secretary rose are an insult to the u.s.-canadian security partnership.
Mr Trudeau said the tariffs were "totally unacceptable" but noted that Canada would continue to negotiate with the us.
Trudeau warned that import duties, including 25 per cent of steel imports and 10 per cent of imports, would hurt both economies.
Mr Trudeau said that "Canada is a security supplier to the us military" and that the idea of a security threat was "unthinkable".He called the tariffs "punitive" and noted the us steel trade surplus with Canada of $2bn.
The dollar rose 40 points against the Canadian dollar in the short term, hitting a peak of 1.2988 after the Canadian decision.
(dollar/Canadian dollar 30-minute chart, source: FX168 financial network)
The dow Jones industrial average fell 300 points.The s&p 500 fell 0.8 percent.Meanwhile, the nasdaq composite index fell 0.3%.
Earlier, the trump administration announced steel and aluminium tariffs on Mexico and the European Union.
The eu responded to the us statement, saying it would take its own counter-measures.
Mexico also immediately responded to the measures, saying it would impose tariffs on imports of apples, pork bellies and flat steel from the United States.
Metal producers in affected countries were granted temporary tariff-free access earlier this year, but they expire on Friday.The tariff was originally announced on March 1.
"If you had seen the headlines two or three months ago, the market would have been worse off," said JohnZaller, chief investment officer at MAI capital management."I think it's the result of market thinking and they think it's a negotiating strategy."
"Unfortunately, it brings a lot of uncertainty," he said."We want to see this problem resolved as soon as possible, not delayed."