US President Donald Trump has announced to impose 50% tariff on many goods coming from Canada. The Trump administration says Canada is discriminating against American cars, liquor and dairy products. This decision is likely to further escalate the trade dispute between America and Canada. Trump has taken this decision under Section 338 of the Tariff Act of 1930. This law allows the President to impose additional tariffs of up to 50% on countries that discriminate against American goods. The special thing is that this almost 100 years old law has been used for the first time.
This new tariff will be applicable after 30 days i.e. from 19th August. It will affect wine, cement, ice hockey equipment, dairy products, swimming pools, furniture, fishing rods, seeds, clothes, wigs and many other goods. US Trade Representative Jameson Greer said that America wants to make fair and equal agreements with its trading partners. But Canada is continuously responding to the tariffs imposed to protect American industries with retaliatory action.
What did the Canadian PM say?
Canadian Prime Minister Mark Carney said that his government has made several proposals to America to end the trade dispute. He says that the tariffs imposed earlier by Trump were a violation of the US-Mexico-Canada Trade Agreement (USMCA). Carney said Canada responded only to those US auto tariffs that were against the agreement. He also said that this trade dispute has increased the burden of inflation on the people of both the countries and Canada is ready for talks.
The Trump administration says that Canada and China had previously imposed retaliatory tariffs in response to US tariffs. For this reason, Canada was not included in the ongoing USMCA negotiations between the US and Mexico. Jameson Greer is currently in separate talks with Mexico in Mexico City.
Threatened to impose tariff on forest fires
Trump and Carney met during the FIFA World Cup final on Sunday. During this, Trump asked Canada to control the forest fire, because its smoke is reaching many parts of America. Trump has already said that the enormous costs incurred by America due to this pollution can also be included in the tariff imposed on Canada.
The White House said that Canada’s dairy supply management system is harmful to American dairy products. Also, Canada imposes tariffs and import limits (quotas) on cars coming from America, while giving such exemptions to some other countries. America claims that in the last one year, Canada has reduced the import of American cars by 22% and the import of American liquor by 81%. Many Canadian provinces have also stopped the sale of American alcohol. However, Trump has kept energy, potash, fish, critical minerals and some products already covered under Section 232 out of this new tariff.
Also read: Why is Trump eyeing Iran’s ‘Kharg’? Tehran said – If Saini comes alive then he will be alive.
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