Trade war intensifies: Canada's retaliatory tariffs on US products come into effect

 

 

Canada's retaliatory tariffs on US products have officially come into effect. Canada has imposed high taxes on US imports worth about 27.6 billion Canadian dollars. The Canadian Ministry of Finance decided to implement the new tariff rates from midnight on Tuesday after bilateral trade talks between the two countries failed. The decision affects key sectors including steel, aluminum, dairy products and electronic devices.

US President Donald Trump reacted harshly to Canada's new tariff policy. He also threatened to impose a complete ban on the products of leading Canadian aerospace company Bombardier in the US market. However, Bombardier management responded to Trump's warning by stating that its American operations create tens of thousands of jobs in 47 US states.

Canada has increased tariffs on various US products by 15 to 50 percent, in line with the 50 percent tariff increase proposed by the US on Canadian products. This is a clear message from Canada that it will not compromise on protecting its economic interests. Unless the two countries are ready to engage in immediate diplomatic discussions on the issue, this could lead to a serious economic crisis in the North American market.