OTTAWA—Canada collected more than $1.27 billion from the retaliatory tariffs on U.S. products over the last year and all of it will go to the Canadian steel and aluminum industry even though the steel trade war with the United States is over.
Canada and the United States reached an agreement Friday to see the U.S. lift the nearly year-old import duties on steel and aluminum President Donald Trump imposed last June arguing the imports threatened national security. Canada had always called the tariffs illegal and absurd and demanded they be lifted immediately.
Canada’s ratification of the new North American trade agreement also hinged on the tariffs coming off.
That officially happened Monday and as a result Finance Minister Bill Morneau said Canada had also lifted the retaliatory duties Canada imposed on U.S. steel and aluminum and more than 70 other U.S. products including licorice, coffee, sleeping bags and ketchup.
“The removal of tariffs and countermeasures is a true win-win for everyone involved, and great news for Canadian and American workers, for our communities, and our economies,” Morneau said in a written statement.
Trump tweeted late Sunday that U.S. farmers “can begin doing business again with Mexico and Canada.”
“They have both taken the tariff penalties off of your great agricultural product,” Trump wrote. “Please be sure that you are treated fairly.”
Retaliatory tariffs ‘key’ to resolution
A Canadian official, speaking on the condition of anonymity because he was not authorized to speak publicly on the matter, said Trump’s tweet reinforces to Canada that “our retaliatory tariffs were key to resolving this.”
The Canadian tariffs were carefully selected to both match the dollar value of the tariffs Canadian companies were paying to the U.S., as well as to target popular products in states of prominent Republican lawmakers or swing states where voters might voice their displeasure.
That included, for example,
Source:: The Huffington Post – Canada