icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

There goes the neighborhood: Canada & Mexico vow to strike back at US in trade war

There goes the neighborhood: Canada & Mexico vow to strike back at US in trade war
US neighbors Canada and Mexico have pledged to retaliate against new tariffs imposed by the White House on steel and aluminum. Officials from both countries accuse the US of protectionism.

Canadian Foreign Minister Chrystia Freeland said Ottawa would take reprisals against the measure by imposing its own tariffs on US exports of steel, aluminum and other products.

According to the FM, the Canadian authorities are planning to slap dollar-for-dollar tariffs on the US with import taxes on steel, aluminum and such goods as whiskey, orange juice and other food products expected to be imposed.

Freeland added that the measures will cover some $13 billion in imports with the goods targeted being subject to tariffs of between 10 and 25 percent.

Meanwhile, Mexico’s economy ministry pledged to adopt mirror trade barriers for US imports to the country, including flat steel, pork, sausages and food preparations, apples, grapes, cranberries, various cheeses and some other products “up to an amount comparable to damage caused by the US action.”

“This measure will be in force for as long as the US government maintains the imposed tariffs,” the ministry said. Shares of American meat producers plunged shortly after the announcement, while hog futures slumped as well. Mexico is the largest buyer of the US pork by volume.

“Mexico categorically rejects any unilateral, protectionist measures that distort trade in North America,” the country’s under-secretary of foreign trade, Juan Carlos Baker, said in tweet.

Unable to reach alternative agreements, Washington opted to impose tariffs on steel and aluminum imports from the previously-exempt Canada, Mexico and the EU, effective Friday, June 1.

The decision was announced by US Commerce Secretary Wilbur Ross the day before. According to Ross, the step followed months of unsuccessful talks between the US and its two neighbors over changes to the North American Free Trade Agreement (NAFTA).

For more stories on economy & finance visit RT's business section

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.

Podcasts