‘Canada has been attacked, we are now in a trade war…’: PM Trudeau announces tariffs on the US

New Delhi: Canadian Prime Minister Justin Trudeau has announced ‘dollar-for-dollar’ retaliatory tariffs against the United States. Speaking in Ottawa on Saturday, Trudeau stated that the new Canadian tariffs on US steel, dairy, electronics, and other industries would come into effect on September 8.

Speaking to reporters, Trudeau said that Canada would firmly counter the new tariffs imposed by the US to protect its workers, farmers, families, and businesses.

Canada’s move follows the imposition of tariffs by the US. After three days of intensive talks between Canada and the US failed to yield a trade agreement, the US imposed tariffs; Canada announced its own tariffs in response. A trade war has now begun following these moves by both nations.

The new tariffs imposed by US President Donald Trump affect various sectors—including liquor, furniture, dairy products, cement, clothing, fishing rods, and hockey equipment—covering goods worth approximately $20 billion, or 5.5 percent of Canada’s exports to the US.

Terms were unacceptable
The Canadian PM stated that the terms proposed by Trump were unacceptable. He noted that they were economically unreasonable, would reduce overall benefits for Canada, and undermine the credibility of any potential agreement. He further added that these conditions would limit Canada’s ability to negotiate new trade agreements.

In his 22-minute speech, Trudeau said that if the US significantly reduces its tariffs, Canada is prepared to lift the existing retaliatory tariffs on US aluminum, steel, and motor vehicles. He also mentioned that Canada is ready to resume the sale of US liquor.

We have been attacked
He further stated that when you are attacked, you are in a state of war; we have been attacked, and we are now in a trade war. The Canadian PM remarked that the final terms proposed by the Trump administration were unacceptable. They demanded too much and offered too little. We cannot accept their offer, nor will we meet their demands. We were not prepared to compromise Canada’s sovereignty or undermine our key industries.

Carney noted that the trade war has brought about a fundamental shift in the relationship between Canada and its southern neighbor. He stated that we have acknowledged from the start that the US has changed. We also recognize that, at times, its commitments are written in pencil. We are not going back to the old relationship.

Canada’s dependence on the US
It is worth noting that Canada is heavily dependent on the US; it imports 70 percent of its goods from there. Consequently, the new tariffs have raised the risk of inflation in Canada, yet the Canadian PM has adopted a firm stance against the US.