US Escalates Trade War with Canada Amid Retaliatory Tariffs
US Trade Representative Jamieson Greer has blamed Canada for the escalation of the trade war between the two countries. According to Greer, Canada's decision to impose counter tariffs on the US led President Donald Trump to sign new executive orders ramping up retaliation.
The new orders will completely bar imports of certain Canadian goods, including motorcycles, some dairy products, and alcoholic beverages, starting later this month. However, some Canadian products such as toilet paper, road salt, and cement have been exempted from the tariffs altogether.
Maine Senator Susan Collins has expressed her appreciation for Trump's flexibility in this matter, citing the exemption of certain Canadian goods that would have had a significant impact on Maine's lobstermen and the town of Frenchville.
Stephen Brown, chief North America economist at Capital Economics, estimates that the items removed from the US tariff list are valued at around $1.7 billion, while the new targets are worth about the same amount. He notes that the escalation raises the risk that the 50% tariffs will remain in place for longer than initially assumed, which would deal a larger blow to the Canadian economy.