US-Canada Trade Talks: The ongoing trade war between the United States and Canada has intensified on Monday as President Donald Trump announced strict tariffs on ‘Made in Canada’ cars, trucks, automotive parts and steel imports. He said that the tariffs on all cars, trucks and automotive parts would be increased to 50 percent from January 2027. The announcement comes following the collapse of trade negotiations between the two countries last week.
Trump announced in a post on Truth Social, accusing Canada of imposing high tariffs on American farmers and agricultural products and warning that companies manufacturing in the United States would face zero tariffs.
“Canada has been ripping off the United States of America for years. Their ridiculously high tariffs on our Farmers and farm products has made life impossible for these great American Patriots, and has long created a 60 Billion Dollar Deficit between our two Countries. Not sustainable, and NOT ANYMORE! On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%. Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer!” Trump said in his post.
The US President further accused Canada of being among the most difficult countries to deal with in trade, arguing that Ottawa depends heavily on the American market while claiming the US does not similarly rely on Canada.
“On Trade, and in other ways, also, they are among the worst Nations in the World to deal with. They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US! They do 95% of their business with the U.S., with us, the exact opposite! Thank you for your attention to this matter!” he added.
The US President’s announcement came after trade negotiations between Washington and Ottawa failed. Canadian Prime Minister Mark Carney termed Washington’s terms as “unfair” and “uneconomic”.
Meanwhile, Canada has also announced that it will respond with retaliatory tariffs on US goods.
Carney said he had instructed Canadian negotiators to return to Ottawa after more than a year of discussions with Washington, arguing that Canada could not accept the US offer.
“Late last evening I instructed our negotiators to return to Ottawa. We cannot accept what the U.S. has offered, and we will not give what they have asked,” Carney said on Saturday.
He added that Canada would match the new US tariffs dollar-for-dollar to protect Canadian workers, farmers, families and businesses.
“Canada will match the U.S.’ new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses. We take this step confident that it is in the best interests of Canada,” Carney added.
Canada’s retaliatory measures are expected to take effect on September 8, with Ottawa targeting a range of US products, including steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.
The latest escalation follows the United States imposing 50 per cent tariffs on roughly USD 20 billion worth of Canadian imports after the trade talks failed.
The measures affect five per cent of Canada’s exports to the United States.
Carney said Canada’s negotiators had made progress during the discussions but that Washington’s final changes undermined the possibility of reaching an agreement.
“Last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal,” he said.
The Canadian Prime Minister said Ottawa would also introduce additional measures to support workers and businesses.
“We have recognised from the beginning that America has changed, and that we will not return to our old relationship,” Carney said.
Carney also said Canada was working to strengthen its domestic economy and diversify its export markets. He said the country was advancing nearly USD 500 billion in major infrastructure projects and seeking new export markets for Canadian businesses.
“Our existing free trade deals already provide Canada with preferential access to 1.5 billion consumers, and we are on track to double that market access by the end of this year,” he said.
The United States Trade Representative, meanwhile, criticised Canada’s decision to suspend negotiations, calling it a missed opportunity and accusing Ottawa of withdrawing commitments and introducing new demands during the talks.
The US said it had offered Canada sector-specific relief involving steel, aluminium, automobiles and lumber, along with cooperation on export controls, digital trade, critical minerals and supply chain coordination.
“Despite the US offer to Canada to receive the best treatment of any major exporter to our market, new demands and walkbacks of other commitments by Canada have upended the careful balance reached in the past days,” the US Trade Representative said.
Trump has earlier slammed Ottawa, referring to Canada as an American state, following the suspension of trade talks and Carney calling the US terms “uneconomic, unfair, and undermining the net benefits” for the country.
In a separate post on Truth Social, making them his first remarks since Carney announced that Ottawa will match the new US tariffs “dollar-for-dollar”, Trump argued that Canada has charged massive tariffs on American farmers.
“Canada wants the benefits of being a State, without being one!!! They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!! President DJT,” the post read.
The latest announcement have deteriorated already strained relations between Washington and Ottawa. Trump had repeatedly criticised Canada’s trade policies, reiterating his statement that Canada is a potential US state. The fresh tariff hike raises tensions for industries deeply integrated across the US-Canada border.
(with ANI inputs)
from World – Latest News, Breaking News, LIVE News, Top News Headlines, Viral Video, Cricket LIVE, Sports, Entertainment, Business, Health, Lifestyle and Utility News | India.Com https://ift.tt/b0rxzQu
