Canada’s Carney: Retaliatory tariffs will start September 8
The United States (US) imposed 50% tariffs on some Canadian products on Saturday after trade talks between the two countries fell apart on Friday. In response, Canadian Prime Minister Mark Carney said that the country would impose its own retaliatory tariffs beginning on September 8, CNBC reported.
Canadian Prime Minister Mark Carney announced on Friday that Canada would impose retaliatory tariffs on US products starting September 8, following the breakdown of trade talks between the two nations. US Trade Representative Jamieson Greer confirmed that Canada had declined to finalize the trade deal under the previously agreed terms.
Carney criticized the US's last-minute changes to the proposed terms as unfair, uneconomic, and questionable regarding the reliability of any deal. At the current moment, the USD/CAD pair is trading at 1.3787, up 0.22% for the day. Tariffs, which are customs duties levied on specific imports or a category of products, aim to boost local producers by providing a competitive price advantage over imported goods.
Economists have differing opinions on tariffs, with some believing they are essential for protecting domestic industries and addressing trade imbalances, while others view them as detrimental to long-term price stability and trade relations. The US has targeted Canada, Mexico, and China, which together account for 42% of US imports, for potential tariffs in the lead-up to the 2024 presidential election.
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