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Canada hits back at US with tariffs on metals, bourbon, orange juice

Canada hits back at US with tariffs on metals, bourbon, orange juice

The federal Liberal government on Friday released the final details of $16.6 billion in tariffs on American imports that will kick in July 1 in response to the Trump administration's imposition of major tariffs on Canadian steel and aluminum last month.

Freeland and Prime Minister Justin Trudeau announced dollar-for-dollar tariffs of their own back in May on some steel and aluminum products and other goods from the USA - including beer kegs, whisky, toilet paper and hair lacques.

Trump has justified the steel and aluminium tariffs by saying imported metals threaten United States national security - a justification that countries rarely use because it can be so easily abused. Starting on July 1 most of the items will be taxed at rates of 10 percent or 25 percent.

The United States has a $ 2 billion trade surplus on iron and steel products with Canada, Freeland also pointed out, and Canada buys more American steel than any other country, accounting for 50 percent of U.S. exports. "Our approach is that we will not escalate, but equally, we will not back down", Freeland said.

Axios news agency reported on Friday that Trump had repeatedly told top White House officials he wants to exit the WTO, citing unidentified sources.

Foreign Affairs Minister Chrystia Freeland revealed the final list of $16.6-billion worth of retaliatory tariffs on US products, including steel and aluminum during a stop at a Hamilton steel factory Friday.

The Trump administration imposed the steel and aluminum tariffs citing "national security" provisions of USA trade law, drawing a rebuke from allies who have fought alongside American soldiers in multiple wars. "This is a perfectly reciprocal action".

"It is a dollar for dollar response". "Working in partnership with industry and business associations, we will provide capacity support to assist Canadian companies tap into the new markets now uniquely open to them in Europe, Asia and around the world".

She said she expects "common sense will prevail".

The two countries, with Mexico, are also locked in negotiations over the North American Free Trade Agreement. He is also threatening to impose another national security-based tariff on imported cars, trucks and auto parts.

The foreign minister joined the European Union the next day in filing a complaint about Trump's steel and aluminum tariffs at the World Trade Organization.

"Canada has to choice but to retaliate with a measured, reciprocal dollar-for-dollar response".

How many tariffs are there on USA products now?

Ottawa also unveiled an aid package for affected industries and workers worth up to C$2 billion, consisting mainly of up to C$1.7 billion in commercial financing and insurance for firms in the steel and aluminum sectors and related industries. "It would change the calculus", he said. A WTO official said Friday that the organisation has not heard from the United States about reconsidering its membership.

While opposition parties have so far largely backed Prime Minister Justin Trudeau for standing up to Trump, their support could be tested once the US tariffs start to bite.

"The United States is acting as a bully to a smaller country, and I think it would be hypocritical of me to sort of show up and accept their hospitality and free food and so on, when we are in the midst of this trade dispute that is going to have serious ramifications for the entire country and employment in this city", Mr. Watson told CTV earlier in the week, HuffPost reported.

"I don't think we'll see any reaction from the Trump administration". Orders are up in anticipation of retaliatory Canadian tariffs on USA gherkins.

U.S. commerce secretary Wilbur Ross last week defended the Trump administration's tariffs before Congress but admitted that Canada's steel industry was "not being accused of directly or individually being a security threat".

Bains, the economic development minister, said the support is aimed at helping firms adjust to the hard circumstances while enabling them to continue to innovate along the way.