21 minutes ago
- copy link
Canadian Prime Minister Mark Carney said on Saturday that Canada will impose retaliatory tariffs on American goods starting September 8.
This decision has been taken after America imposed 50% tariff on Canadian products worth about $20 billion.
The last round of talks between the two countries also ended without any agreement on Friday.
Canada’s retaliatory tariffs will be imposed on American goods such as steel, dairy products, household appliances, agricultural equipment, pulp and paper and electronics. Complete information about which products will be subject to tariff will be released in the coming days.
The talks between the two countries lasted for 3 days and remained inconclusive.
Trade deal talks between America and Canada that lasted for 3 days failed. After this, US President Donald Trump imposed 50% tariff on Canadian goods worth $ 20 billion (about Rs 1.9 lakh crore) from Saturday midnight.
This tariff represents about 5% of total goods shipped to the US from Canada. US and Canadian officials held three-day talks in Washington DC, but a trade agreement could not be finalized.
Canadian Prime Minister Mark Carney said that the more tariffs America imposes, the more Canada will respond.
America said- good offer was given, they missed the opportunity
After a trade deal could not be reached between the two countries, the US Trade Representative (USTR) posted on social media that Canada has missed a great opportunity for a partnership with America.
According to USTR, they had made the best offer to Canada of any major exporter. But this deal could not be done due to Canada’s new demands and withdrawal from earlier promises.
USTR further said that if this deal had gone through, it would have resulted in supply chain coordination in aerospace, necessary steps to combat unfair trade practices, cooperation on minerals, and announcement of US-Mexico-Canada Agreement (USMCA) negotiations.
Why did America impose such high tariffs on Canada?
The US says that some of Canada’s trade policies are harmful to American companies. There is a long standing dispute between the two countries on many issues. Among these, automobile, dairy products, liquor and wood business are prominent.
America had earlier announced the imposition of new tariffs from August 20. However, just before the deadline, both countries decided to start talks. After this, Trump extended the deadline for implementing the tariffs by 3 days, so that an agreement could be tried.
According to American officials, agreement was reached on many issues, but in some important matters the two countries could not agree on each other’s terms.
1. Allegation of discrimination against American cars
The US has long complained that Canada’s trade policy does not give American car companies a level playing field in the Canadian market.
America wants the Canadian market to be more open for its cars and other goods.
Canada, in return, had asked the US for relief from tariffs imposed on steel, aluminium, cars and lumber. But America was not ready to remove these tariffs.
2. Canada’s protection of its dairy market
Canada has long been implementing several regulations to protect its dairy market from foreign companies and cheap dairy products.
America wants an opportunity to sell its milk, cheese and other dairy products more easily in the Canadian market.
But Canada was not ready to give much concession regarding its dairy sector. Differences remained between the two countries on this issue also.
3. American ban on sale of alcohol
Restrictions have also been imposed on the sale of American liquor in some parts of Canada. America sees this as discrimination against its goods.
America wants its liquor to be allowed to be sold more easily in the Canadian market.
Apart from this, there is a long standing dispute between the two countries regarding Canadian softwood lumber. The US has been imposing various trade restrictions and tariffs on lumber coming from Canada.
—————
Read this news also…
Bill with 100% tariff on India passed in US Senate: Action against 5 countries buying Russian oil; 86 MPs voted in favor, 11 against
The US Senate has passed a bill imposing tariffs of up to 100% on 5 countries including India with a majority of 86-11. Its purpose is to reduce Russia’s oil earnings, so that its war fighting ability can be weakened. Read the full news…
Source link
[ad_3]
