Canada said Thursday that the U.S. would be hit with $12.8 billion in tariffs on steel, aluminum, and other products such as beer and whiskey, in retaliation for the U.S. lifting an exemption for the country from its new tariffs on steel and aluminum.
Foreign Affairs Minister Chrystia Freeland said the U.S.’ claim that its tariffs were needed for national security reasons is wrong, noting that the U.S. and Canada are long-standing allies.
“It is entirely inappropriate to view any trade with Canada as a threat to the United States’ national security,” Freeland said during a press conference with Prime Minister Justin Trudeau.
Trudeau said Canada regretted the move but argued the U.S. gave them no choice. “The American administration has made a decision today that we deplore, and obviously is going to lead to retaliatory measures, as it must,” he said.
The tariffs announced by Freeland will cover $12.8 billion.
[Also read: Trump ends his nice-guy routine on trade]
U.S. Commerce Secretary Wilbur Ross said Thursday that the U.S.’ tariffs of 25 percent on imported steel and 10 percent on imported aluminum would go into effect Friday against Canada, the European Union, and Mexico, following months of wrangling between the respective governments to resolve the dispute. The White House said its tariffs had “already had major, positive effects on steel and aluminum workers.”
The tariffs are particularly harsh for Canada, which sends 90 percent of its exported steel to the U.S.
The Trump administration announced the tariffs in March but initially excluded Canada, Mexico, and the E,U, countries from them. An administration official said at the time that the Canadian and Mexican exclusions were temporary and intended to pressure the countries to agree to concessions during talks to update the 1993 North American Free Trade Agreement.
