Canada hits $13 billion of U.S. goods with new tariffs

Canada hits $13 billion of U.S. goods with new tariffs

The tit-for-tat duties are a response to punishing United States steel and aluminum tariffs imposed at the start of last month.

Trump has slapped tariffs on billions of dollars worth of steel and aluminum imports from China, the European Union, Canada and others, prompting retaliation against US products.

The new Canadian tariffs, which took effect at 12:01 a.m. Sunday, are hitting a long list of US consumer goods, including ketchup and other Kraft Heinz products.

Trump has repeatedly suggested Canada was profiting from US trade, and his blistering comments after the G7 meeting drove bilateral relations to their lowest point in decades. Some U.S. products, mostly steel and iron, face 25 percent tariffs, the same penalty the United States slapped on imported steel at the end of May.

Trudeau says he looks forward to working closely with Lopez Obrador to build on the "vibrant partnership" between Canada and Mexico to create economic growth that works for everyone, and advances human rights and equality.

Ketchup, mayonnaise, soy sauce, strawberry jam, mixed condiments and other sauces are also subject to levies.

Trump himself has already threatened to go even further by putting tariffs on the automotive sector, which could prove far more damaging for the Canadian economy than the steel and aluminum duties.

GM, which makes many vehicles for the USA market in Mexico and Canada, said the tariffs could hike vehicle prices and reduce sales. "[As] Canadians, we're polite, we're reasonable but we also will not be pushed around".

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U.S. President Donald Trump shakes hands with Canada's Prime Minister Justin Trudeau (R) in a bilateral meeting during the G7 Summit in the Charlevoix town of La Malbaie, Quebec, Canada, June 8, 2018.

Diab said in an interview that the tomato-processing facility will face increasing cost pressures as a response to the Canada-U.S. trade dispute.

Foreign Affairs Minister Chrystia Freeland has said she spoke with U.S. Trade Representative Robert Lighthizer six times last week and that she expects NAFTA talks to move into a higher gear this summer.

United States officials have linked the tariffs to slow progress in talks to modernise the North American Free Trade Agreement, which Trump says is a disaster and must be changed. "The president has been clear ... he has concerns about the WTO, he thinks there's aspects of it that are not fair, he thinks that China and others have used it to their own advantage, but we are focused on free trade".

Later in the day in Regina, Public Safety Minister Ralph Goodale said Canada's tariffs were created to offer a clear message that the Trump administration's trade action against Canada is "illegal and absurd" and that Canada is responding, dollar-for-dollar, in retaliation.

"I'm glad that Justin Trudeau is standing up to him, because I feel like that's his modus operandi, he just tries to bully to get his way and we need to stand up for ourselves", she said.

1 July 10-percent tax is imposed on more than 250 kinds of American goods.

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