Canada announced on Wednesday a new trade operation on US goods worth around $21 billion in response to President Donald Trump’s implementation of universal steel and aluminum tariffs.
The Northern American neighbour is the largest foreign supplier of steel and aluminum for the US, and experts warn that Trump’s obligations will be passed on to consumers.
A Canadian government spokesman who announced his retaliation obligation at a press conference Wednesday called Trump’s tariffs “completely unfair, unfair and unreasonable.”
“The US administration is once again inserting chaos and obstacles into a highly successful trading partnership, increasing the costs of everyday goods for Canadians and American households,” said François Philippe Champagne, Minister of Innovation, Science and Industry, Canada.
The Canadian announcement comes despite reaching the Trump administration on Tuesday to resolve the threat of a 25% surcharge to American consumers of Canada’s electricity. Trump was threatening Canada by raising steel and aluminum tariffs to 50% if Ontario continued at an additional charge.
The Dow Jones industrial average fell into negative territory on Wednesday, receding from previous profits following an exceeded inflation report.
Canada’s retaliation measures follow those announced by the European Union, which targets a range of US goods worth $28 billion, including beef, motorcycles and whiskey, along with American-made steel and aluminum.
Stocks of US automakers have fallen. In a memo to clients on Wednesday, analysts at Barclays Financial Services Group said Ford and GM reported a decline in profitability when Trump implemented similar mandates.
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