Trade Tensions: Canada hits back at US over tariffs, says it won't back down
Updated 22:30, 03-Jul-2018
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Now to the global backlash against the United States as Canada joins the European Union and other US trading partners in retaliating against the Trump administration's tariff hikes on steel and aluminum. Canada says it vows to impose punitive measures on American goods until Washington relents. This comes as General Motors warns any tariffs Washington imposes on imported vehicles could cost American jobs. Timothy Ulrich has more.
Canada announces counter tariffs valued at 12 billion US dollars on American goods after Washington imposed tariffs on aluminium and steel.
CHRYSTIA FREELAND CANADIAN FOREIGN MINISTER "Canada has no choice but to retaliate with a measured, perfectly reciprocal dollar for dollar response. And that is what we are doing."
Canadian tariffs take effect on Sunday and largely target US steel and aluminum. And this is just the latest retaliatory measure against Washington after it imposed tariffs on allies and rivals alike.
The EU has already imposed a range of tariffs on US goods worth 2.8 billion euros. Then President Trump threatened to slap a 20 percent tariff on European car imports. European Commission President Jean-Claude Juncker says he suspects the Trump administration is trying to "divide" the bloc's members over trade.
JEAN-CLAUDE JUNCKER EUROPEAN COMMISSION PRESIDENT "Europe continues to stand for fair trade, free trade, trade based on trust, common rules and reliable partners. And we continue to be of the view that a multilateral approach is the right one. We feel that unilateral approaches would be misleading."
Mexico is the second largest market for US exports, and America's southern neighbor has imposed tariffs of 15 to 25 percent on US farm goods and steel. India is raising tariffs on US goods including almonds, apples and some metal products. It is a 241 million US dollar measure that matches the amount of steel and aluminum import duties the US is expected to make from India.
Russia is also firing back by filing its own lawsuit with the WTO. Moscow says America's tariffs violate WTO rules. It's estimated Russia may lose 2 billion US dollars from steel and 1 billion US dollars from aluminum exports.
Aside from international outrage, the Trump administration's protectionist policies also drew domestic criticism. After iconic American motorcycle maker Harley-Davidson decided to shift part of its production line overseas to avoid retaliatory EU tariffs, House Speaker Paul Ryan criticized US tariffs as "basically taxes". He warns it could spark a trade war with allies around the world. Analysts say shots are already being fired.