US Cracks Down on $1 Billion in Canadian Imports Amid Escalating Trade War
A U.S. ban on certain Canadian imports took effect at midnight on Tuesday after U.S. President Donald Trump signed an executive order in response to Canada's retaliatory tariffs following the collapse of trade talks in August.
The ban affects key industries, including alcohol, dairy and motorcycles. The White House justified the measure earlier this month, saying Canada's restrictions on U.S. alcohol, autos and dairy products put American exporters at a disadvantage.
In related news, President Trump announced a new US$15 billion steel plant being built in Iowa, which he touted as an economic victory in a key battleground state where Republicans face competitive midterm races.
Critics of the U.S. trade policy changes argue that they have simply exposed long-standing flaws in Canada's economy, rather than creating them. Business analyst and professor Ian Lee said, 'We created a series of policies that made us weaker as an economy.'