July 1, 2018

Canada Imposes Major New Tariffs on American Goods

The new taxes are a direct retaliation against Trump’s trade measures.

Trump and Trudeau

President Donald Trump and Canadian Prime Minister Justin TrudeauMichael Kappeler/DPA via ZUMA

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Canada officially implemented tariffs on about $12.5 billion worth of US goods Sunday, the latest offensive in the growing trade battle between the United States and other major economic powers. US exports of steel and other metal products now face a 25-percent tax, while other products—such as milk, ketchup, beef, and yogurt—will be taxed at 10 percent. 

The tariffs come in direct response to the Trump administration’s own tariffs on Canadian steel and aluminum, which have also affected Mexico, China, Turkey, India, and the European Union. Canadian officials first announced the new tariffs on Friday. 

“We will not escalate, and we will not back down,” said Chrystia Freeland, Canada’s foreign minister. “It is a dollar-for-dollar response.”

Other countries have also slapped retaliatory tariffs on the United States, with the EU adding taxes on motorcycles, bourbon, and orange juice. On Monday, Harley-Davidson announced it would move some of its production overseas, citing the EU’s new tariffs on American-made motorcycles. The company’s announcement infuriated President Donald Trump:

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That means we're going to have upwards of $350,000, maybe more, to raise in online donations between now and June 30, when our fiscal year ends and we have to get to break-even. And even though there's zero cushion to miss the mark, we won't be all that in your face about our fundraising again until June.

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