US President Donald Trump announced on Thursday that he was reimposing a 10% tariff on Canadian aluminium imports. Trump stressed that saying that the move was “absolutely necessary” to protect the US aluminium industry and national security, since Canada had “taken advantage” of America and “broken its commitment” to stop flooding the US market with cheaper exports.
The decision, which prompted Canada to pledge retaliation, reignites trade tensions with a key partner just months after the adoption of a new North American trade agreement.
Trump first imposed tariffs on steel and aluminium from Canada, Mexico, and the European Union (EU) in 2018, sparking an intense trade war. The levies on imports from Canada and Mexico were not lifted until May of last year when the nations reached an agreement as part of the broader negotiations regarding a new North American trade deal. The deal, dubbed the new NAFTA, was ratified by the US Senate in January. However, the US reserved the right to restore tariffs, if it observed a spike in metal imports, which Trump cited as the driving force behind the decision on Thursday.
Canadian PM Justin Trudeau on Thursday evening vowed to impose “dollar-for-dollar retaliatory tariffs” in response. “We will always stand up for our aluminum workers. We did so in 2018 and we will stand up for them again now,” he wrote in a tweet. Deputy PM Chrystia Freeland issued a statement as well, not only criticizing Trump for his actions but also rejecting his national security justification for the measure. “Canadian aluminum does not undermine U.S. national security. Canadian aluminum strengthens U.S. national security and has done so for decades through unparalleled co-operation between our two countries. Canada is a reliable supplier of aluminum for American value-added manufacturers. Aluminum trade between Canada and the US has long been mutually beneficial economically for both countries, making the North American aluminum industry as a whole more competitive around the world,” she said.
The decision has raised concerns among industry experts in the US as well. In June, a group of 15 aluminium executives sent a letter to US Trade Representative Robert Lighthizer arguing against the levies. The US Chamber of Commerce has also warned that the reimposition of the tariffs could raise the costs for US aluminium manufacturers and make their products less competitive globally.
US Reinstates Tariffs on Canadian Aluminium
Canada has vowed to impose “dollar-for-dollar retaliatory tariffs” in response.
August 7, 2020
US President Donald Trump and Canada's Prime Minister Justin Trudeau at the G7 summit in France in 2019. SOURCE: VOA/REUTERS