XINHUA – United States (US) President Donald Trump warned that he would impose reciprocal tariffs on Canada’s dairy and lumber products unless its neighbour lowers tariffs.
Trump made the remarks in an Oval Office address, adding that the US would match those tariffs.
“Canada has been ripping us off for years on tariffs for lumber and dairy products, 250 per cent, nobody ever talks about that. 250 per cent tariff, which is taken advantage of our farmers. So that’s not going to happen anymore. They’ll be met with the exact same tariff unless they drop it, and that’s what reciprocal means. And we may do it as early as today, or we’ll wait till then, but that’s what we’re going to do. We’re going to charge the same thing. It’s not fair.”
On February 1, Trump signed an executive order imposing a 25-per-cent tariff on products imported from Mexico and Canada, with a 10-per-cent tariff increase on Canadian energy products. On February 3, Trump announced a 30-day delay in implementing the tariffs on both countries and continued negotiations. According to this decision, the relevant tariff measures took effect on March 4.
Just two days after the tariffs took effect, Trump signed executive orders on Thursday to grant a one-month suspension of the tariffs on Mexico and Canada under the US-Mexico-Canada Agreement (USMCA).
About half of goods coming into the US from Mexico would fall under the exemption and around 38 per cent of goods from Canada would qualify, the NBC News quoted a senior administration official as saying.
When signing the executive orders at the White House, Trump told reporters that the policy adjustments would help US automakers during the “short-term transition” from now until April 2, when wide-ranging “reciprocal tariffs” will be announced.
In response, Canadian Finance Minister Dominic LeBlanc announced later in the day that Canada will also halt its second wave of tariffs on US goods until April 2.
However, Canadian government officials have stated that the country’s initial retaliatory tariffs on the US will remain in effect, despite Trump delaying the 25-per-cent tariffs on certain US imports from Canada for a month.
These retaliatory tariffs affect items such as US orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles and more.
Canadian Prime Minister Justin Trudeau said earlier this week that Canada would continue to be in a trade war with the US for the foreseeable future.
