Donald Trump ordered bans on Canadian dairy products, motorcycles and many alcoholic drinks on Tuesday, the day Canada's retaliatory tariffs on about $20 billion of US goods took effect. The bans start on Sept. 29, while a separate 50% tariff on Canadian goods including mattresses, motorboats and golf carts begins Sept. 15, DW reported.
What do Canada's tariffs cover? They hit hundreds of American products, the Korea Times reported, among them steel, aluminum, cheese, appliances, clothing, cosmetics and farm equipment, at rates of 15%, 25% or 50%. Ottawa says they match Washington's duties dollar for dollar and rate for rate, covering roughly 6% of the $333.6 billion the United States exported to Canada last year. Canada's move follows 50% US tariffs on roughly $20 billion in Canadian products, including wine, dairy, clothing and hockey equipment, which took effect in late August, PBS NewsHour reported.
What has Carney said? Prime Minister Mark Carney said Canada would move quickly to reduce its economic reliance on the United States. Carney, in remarks broadcast by PBS NewsHour, said of Washington, "They were asking far too much and offering far too little." The push to cut that dependence is "about ensuring that no country can hold us hostage," he said on Tuesday, DW reported. He is due to address the European Parliament in Strasbourg next week.
What else do the orders do? Trump also directed the General Services Administration to exclude Canadian products from long-term government procurement contracts unless Canada restores "full and fair reciprocity for American Farmers and Companies." He put Canadian goods and services sold under the Multiple Award Schedule at more than $50 billion a year, though the actual number may be much lower, the Japan Times reported. The White House said the alcohol ban was partly a response to provincial boycotts of US alcohol, a move DW reported Trump has called "discriminatory." The orders followed a threat by Trump on Monday to bar plane maker Bombardier from selling jets in the US unless it builds them there.
What is the political fallout? The escalation has put Senate Republican candidates in the awkward position of defending the administration's economic record, The Hill reported. Canadians, the Korea Times reported, have sharply cut travel to the United States and boycotted US goods, while Trump's pressure has so far strengthened support for Carney rather than forcing concessions.
Figures referenced: Donald Trump. — JudgeMarket.
