The trade war between the U.S. and Canada shows no signs of stopping.
By Catholics for Catholics
The United States is prohibiting motorcycles, most alcoholic beverages and dairy products from Canada, the White House said Tuesday, as the trade war between the two countries heightens.
The ban will be active in three weeks and comes after Canada imposed retaliatory tariffs on $20 billion in U.S. imports earlier Tuesday.
According to a story by Newsmax, Canada’s reciprocal tariffs on U.S. goods were activated just after midnight on Tuesday as Prime Minister Mark Carney amplified economic pressure on his country’s biggest trading partner after negotiations caved-in last month, escalating an 18-month-old trade war.
The counter-tariffs cover $20 billion of U.S. goods, with duties ranging from 15% to 50% across products from steel and furniture to clothing and electronics.
“What we are worried about is an escalatory spiral,” said Michael Harvey, executive director of the Canadian Agri-Food Trade Alliance and a member of Carney’s advisory committee on bilateral U.S. economic relations.
“But at the same time, we totally understand that the prime minister needs to find areas of leverage,” Harvey said.
A government source said there are currently no talks between the two sides among ministers or government officials.
“The Canadian government needs to keep channels open to the United States and not go overboard in terms of rhetoric and reacting to the rhetoric from the American side, while waiting for the American decision-making process to come back to economics,” Harvey said.
The tit for tat retaliation marks a rise in the dispute between the neighboring countries, and U.S. and Canadian officials have traded blame for scuttling a deal that seemed close to fruition two weeks ago.
The rising tensions create uncertainty about the broader U.S.-Mexico-Canada free trade agreement, which is up for annual reviews after President Donald Trump declined to extend it for another decade.
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