US targets Canadian goods in latest trade escalation
AgenciesUS-Canada relations, already tense, are likely to deteriorate further after the United States went ahead early Tuesday with a decision to ban nearly $1 billion worth of Can...
In a further escalation of trade tensions, the United States has imposed a ban on nearly $1 billion worth of Canadian imports, including alcoholic beverages, dairy products, and motorcycles. This move follows a 50 percent tariff increase on about $20 billion worth of Canadian goods, which Canada has countered with its own tariffs ranging from 15 percent to 50 percent.
Trade attorney Patrick Childress stated that the ban will not significantly impact the already substantial $880 billion trade between the two countries. The banned products were already facing Trump's tariffs, making the de facto ban economically ineffective. Jacob Jensen, director of trade policy at the American Action Forum, predicts that the ban will cover $967 million worth of Canadian imports, primarily alcoholic beverages due to some Canadian provinces banning US booze.
The ban also affects some dairy products and motorcycles. However, certain businesses like Crown Royal and Labatt Brewing Co. may find workarounds to avoid the ban. The economic impact is expected to be minimal, but the move marks another escalation in the ongoing trade war, potentially leading to further Canadian retaliation and hindering efforts to renew the US-Mexico-Canada Agreement.
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