Canada will continue to be in a trade war with the United States even if there is a temporary suspension on U.S. customs tariffs. Prime Minister Justin Trudeau said the day after a phone conversation he described as “graphic” with President Donald Trump.
“Our goal remains the elimination of these customs duties, all customs duties,” he added, clarifying that talks with the US government are ongoing. “We will not withdraw our customs tariffs until the unjustified US tariffs are removed,” he said.
As of Tuesday, the United States has imposed 25% customs duties on U.S. and Mexican products, except for Canadian hydrocarbons on which it imposes 10% duties.
Ottawa quickly announced tariff retaliation on certain U.S. products and assured that the list would grow over time.
Trump said Wednesday that Canada’s responses were insufficient but agreed to exempt the critical auto sector from tariffs for a month at the request of U.S. automakers.
Today, the US Commerce Secretary made it known that products from Canada and Mexico, which abide by the terms of the free trade agreement with the US, “probably” will eventually be exempted from customs duties for a month.
It’s a hopeful sign, Justin Trudeau responded before reporters, however, assessing that “it means that (US) customs duties remain in place and therefore our response will remain in place.”
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