On Friday, Ottawa unveiled plans to impose approximately $12.6 billion worth of tariffs on USA goods from July 1, following the example of other major us allies.
While there were calls to impose the retaliatory tariffs immediately, the government opted to hold off until July 1 and hold consultations on the retaliatory measures on an array of US goods. Ottawa also unveiled 2 billion dollars ($ 1.5 billion) in aid for the two sectors. For example, Canada imports just $3 million worth of yoghurt from the USA annually and most of it comes from one plant in Wisconsin, the home state of House Speaker Paul Ryan.
Findlay said a bigger concern than the tit-for-tat moves between the US and Canada is the repercussions of Trump's broader movement on trade, which has included tariffs aimed at China and countermeasures by the Chinese government.
Since then, the Tories have launched their own "defend local jobs tour", to hear from workers and businesses impacted by the tariffs and threats of further trade action; while the NDP got unanimous consent from all sides in the House of Commons to pass a motion backing Canadian steel, aluminum, and supply management sectors, while condemning "disparaging ad-hominem statements by USA officials". If Trump steps up his attacks on Canada's economy and imposes a tariff on automobiles as threatened, it would lead to "carmageddon", Flavio Volpe, president of the Automotive Parts Manufacturers Association, told a Commons committee hearing on Tuesday.
Alberta's NDP government is backing Ottawa's retaliatory tariffs against the United States even as a prominent local business organization is concerned about Canada taking aggressive trade action against its southern neighbour.
Earlier this week however, the Calgary Chamber of Commerce urged the Liberal government not to retaliate against Trump with tariffs of its own. Business people warned Canadian lawmakers this week that an escalation into an all-out trade war would be devastating to the Canadian economy, which sends about 75 percent of its exports to the US.
It's an idea with plenty of support from those critical of our supply-management system.
Martha Hall Findlay, president of the Canada West Foundation think tank, said the federal government is being "very strategic" in trying to create a domestic political issue for the White House.
While the USA can leave the WTO, it's uncertain whether Trump could do so without approval from Congress.
Freeland said there are no grounds for further US tariffs in response to Canada's actions.More news: Borussia Dortmund star Marco Reus ready to bring down South Korea
The United States also is the top destination for Canadian vacationers, who made 42 million trips to the U.S. in 2017. Canadian steel is used in American tanks, and Canadian aluminum in American planes. Here is just one line item from the federal government's official list: "Nails, tacks, staples, screws, bolts, nuts, screw hooks, rivets, cotters, cotter-pins, washers and similar articles".
Meanwhile, motorcycle giant Harley-Davidson revealed on Monday that it was planning to shift some of its production overseas after European Union tariffs rose from 6 to 31 percent. A bureaucratic title that manages to slip in a little drama with "countermeasures" and "unjustified".
Combined trade in aluminum between Canada and the U.S.is more than $11.4 billion a year.
Canada also faces risks from the U.S.
But there's nothing amusing about a trade war.
The US has also been contemplating tariffs in the auto industry. We get along, we welcome Americans here, Canadians are welcome in the United States.
There is a lot of money at stake.
"US tariffs have been in place on Canadian goods since June 1".
And we buy $17 million worth of maple sugar and maple syrup from Americans.