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Canada Feds to unveil plan to tackle U.S. aluminum tariffs

14:26  18 september  2020
14:26  18 september  2020 Source:   globalnews.ca

Ottawa weighs next steps as aluminum counter-tariff rollout nears

  Ottawa weighs next steps as aluminum counter-tariff rollout nears Hundreds of submissions made as federal government weighs retaliatory aluminum tariffs.Deputy Prime Minister Chrystia Freeland announced last month the government would hit back with "dollar for dollar" matching tariffs after the Trump administration yet again slapped tariffs on Canadian aluminum under the claim that it represents a national security threat to the United States.

“ Aluminum from Canada is no threat to national security in the United States. I think that’ s more obvious than ever,” Champagne said Monday. Trump previously used steep tariffs on steel and aluminum as a bargaining chip during those negotiations to pressure Canadian officials to cave to his

(26 Jul 2018) FOR CLEAN VERSION SEE STORY NUMBER: apus101308 Treasury Secretary Stephen Mnuchin says addressing steel and aluminum tariffs and counter

a close up of a metal object: In this Wednesday, July 11, 2018, photo rolls of steel sit in a warehouse at a fabrication company in Chester, Va. Some U.S. manufacturers are feeling the impact of tariffs of up to 25 percent that the Trump administration has imposed on thousands of products imported from China, Europe, Mexico, Canada, India and Russia, and of retaliatory tariffs that countries have put on U.S. exports. Among the products the U.S. has targeted are aluminum, steel and goods made from those metals, vehicles and their components and computer parts. The retaliation has hit U.S. makers of food and farm products, alcoholic beverages and boats and other vehicles. (AP Photo/Steve Helber) In this Wednesday, July 11, 2018, photo rolls of steel sit in a warehouse at a fabrication company in Chester, Va. Some U.S. manufacturers are feeling the impact of tariffs of up to 25 percent that the Trump administration has imposed on thousands of products imported from China, Europe, Mexico, Canada, India and Russia, and of retaliatory tariffs that countries have put on U.S. exports. Among the products the U.S. has targeted are aluminum, steel and goods made from those metals, vehicles and their components and computer parts. The retaliation has hit U.S. makers of food and farm products, alcoholic beverages and boats and other vehicles. (AP Photo/Steve Helber)

Canada could hit back this week with retaliatory measures after the U.S. slapped tariffs on aluminum imports.

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President Trump came through on a major campaign promise to American workers Thursday, announcing the US will impose a 25 percent tariff on steel imports

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Deputy Prime Minister Chrystia Freeland is expected to make an announcement about how the government plans to tackle the counter-measures Tuesday morning.

On Monday, Foreign Affairs Minister Francois-Philippe Champagne said Canada is still trying to negotiate the dispute but will apply "the same policy we did last time" if deemed necessary.

"We had dollar-for-dollar tariffs," Champagne said ahead of a two-day cabinet retreat in Ottawa.

Read more: Survey suggests majority of Americans, Canadians oppose Trump tariff on imported aluminum

"Obviously we're continuing to negotiate, but we're going to be prepared to react, as we did last time. I think Canadians understand that we stood up and will stand up again for aluminum in Canada."

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“In response to the American tariffs , Canada intends to swiftly impose dollar-for-dollar countermeasures,” Deputy Prime She called the U . S tariffs “unwarranted and unacceptable.,” noting that Canadian aluminum does not undermine U . S . national security but strengthens it.

Tariffs or no tariffs , the U . S . consumes up to six million tonnes of aluminum every year. But its struggling domestic industry produces only 800,000 When the previous round of American steel and aluminum tariffs ended, the joint statement issued by Canada and the U . S . laid out conditions under

U.S. President Donald Trump announced the reimposition of a 10 per cent tariff on some Canadian aluminum products during an event in Ohio on Aug. 6, claiming the U.S. aluminum business was "being decimated by Canada" and that Canada had broken a promise not to flood the U.S. market with the product.

The White House also cited national security concerns in explaining the Trump administration's decision to restore the tariffs. The U.S. tariffs went into effect on Aug. 16.

Freeland previously called the U.S. decision "unwarranted" and said Canada would respond "swiftly and strongly" with retaliatory tariffs valued at $3.6 billion.

Freeland's announcement Tuesday follows 30 days of consultations by the government on aluminum and aluminum-containing products it is looking to subject to the tariffs.

The list of potential targets includes goods such as appliances, drink cans, office furniture, bicycles and golf clubs.

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The federal government has released its final retaliatory tariff list and is offering up to billion in financial aid to the steel, aluminum and The ministers highlighted the billion U . S . annual trade surplus on iron and steel products with Canada, and doubled down on calling the national security

And last month, Trump reinstated tariffs on aluminum and steel from Argentina and Brazil, nations that he criticized for cheapening their currencies to the detriment of American farmers, and he again called on the U . S . Federal Reserve to loosen monetary policy. Linking his trade agenda with his Fed

Both Champagne and Freeland have vehemently denied Trump's claims.

"Aluminum from Canada is no threat to national security in the United States. I think that's more obvious than ever," Champagne said Monday.

"When you're looking at supply chains, which are going from global to regional, the real opportunity here is to think, 'How can we build more in North America and sell to the world?'"

Read more: Trump’s aluminum tariffs are ‘bad economics,' says Canadian industry minister

In the past, Freeland has also emphasized that the "first casualties" of the reimposed tariffs would be American workers and consumers.

“The United States has taken the absurd decision to harm its own people at a time when its economy is suffering the deepest crisis since the Great Depression,” she said on Aug 7.

“In fact, the very washing machines manufactured at the Whirlpool plant where the president made his announcement yesterday will become more expensive for Americans and less competitive with machines produced elsewhere in the world.”

Trump's move comes on the heels of a U.S. presidential election in November and amid a steep economic downturn caused by the coronavirus pandemic. It also follows the renegotiated NAFTA, which came into force in July after years of work by Canadian, American and Mexican officials.

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U . S . aluminum producers offer alternatives to Trump' s proposed 10 percent tariff on aluminum imports, including targeting China. The alternatives include a tariff specifically targeted to China' s aluminum industry and an exemption for Canadian, European and other foreign producers.

The World Trade Organization agreed Wednesday to investigate the legality of U . S . tariffs on steel and aluminum imports based on national security concerns, a decision the U . S . says could undermine the legitimacy of the Geneva-based trade body.

Trump previously used steep tariffs on steel and aluminum as a bargaining chip during those negotiations to pressure Canadian officials to cave to his demands.

— with files from the Canadian Press and Global News' Amanda Connolly 


Video: Champagne says response to new U.S. aluminum tariffs will be ‘same as last time’ (Global News)

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