U.S. goods imported into Canada do not face 'nearly zero' tariffs, according to the Finance Minister.
Sparkin' a Trade Fight 🔥
It's no secret that Canada and the U.S. are locked in a heated trade dispute. Frank Champagne, our Financier General, recently chimed in on this ongoing feud via social media. He declared that a hefty 70% of Canada's counter-tariffs, instituted back in March, are still standing tall.
The government temporarily halted tariffs on some products for health and public safety reasons, but these are the exception, not the rule. Champagne's words push back against a May 13 report from Oxford Economists stating that recent exemptions from tariffs have left Canada's tariff rate against the U.S. at a "nearly zero."
Looking at the numbers, Canada's counter-tariffs on U.S. goods, primarily consumer goods and steel, total an impressive amount. The U.S., on the other hand, has slapped tariffs on many Canadian goods, particularly automobiles and steel.
It's worth mentioning that these tariffs have exceptions for goods that comply with the Canada-United States-Mexico Agreement (CUSMA). However, the majority of Canada's retaliatory tariffs stick like glue, serving as leverage in negotiations with the U.S.
Champagne's assertion that most counter-tariffs remain in force indicates that Canada isn't backing down from this trade spat anytime soon. The question now is how long this feud will last and who will blink first. 🤔
- The current trade dispute between Canada and the U.S. extends beyond just finance, as the disagreement has also impacted the health sector and various business industries, including automobiles and steel.
- The assertion by Frank Champagne, our Financier General, suggests that the general-news about the ongoing trade fight is more complex than the May 13 report from Oxford Economists, which stated that recent tariff exemptions have reduced Canada's tariff rate against the U.S. to a near zero.
- Politics plays a significant role in this trade situation, as Canada's decision to maintain most of its counter-tariffs could be seen as a strategic move in negotiations with the U.S., dictating the length and outcome of this ongoing trade dispute.
