Canada to drop many of its retaliatory tariffs on the US

Canadian Prime Minister Mark Carney said on Friday, his country will leave billions of dollars for US goods for retaliation tariffs, but will keep taxes in automobiles, steel and aluminum.

President Donald Trump’s two countries have been coming to the phone for the first time since he missed a self -imposed deadline for a trade agreement to reach a trade agreement.

On a number of products, including Orange juice and washing machines, Canada placed a 25% tax on US goods worth approximately $ 30 billion (£ 16 billion; $ 21.7 billion).

As of August, the tax hike was retaliating to the US tariffs in Canada, which had a value of 35% in all goods that were not compatible with the current free trade agreement of the countries.

Carney said that Canada will now match the tariffs on goods compatible with the US Mexico-Canada Free Trade Agreement (USMCA). He said that the goods moving between the two countries will “re -establish free trade for the vast majority”.

Carney said the decision would come into force on September 1.

In a statement to the US news partner CBS, the BBC said that the White House welcomed Canada’s movement and is looking forward to making continuous discussions on trade and national security with the northern neighbor of the US.

Trump later told reporters on Friday, he said that he and Carney will soon talk on the phone.

Canada is one of the many countries described by the United States as part of Trump’s global trade strategy, but with only two countries – China, who placed retaliation taxes in response to American goods.

The poll shows that the majority of Canadians support retaliation tariffs in the US.

Carney, who was selected in the April general elections, campaigns for an aggressive “elbows” approach to negotiate with Trump, referring to a popular ice hockey term.

Carney asked the reporters about whether he softened his approach to Canada, said that he had made a better tariff agreement with the United States because of the free trade carving.

This said that the real tariff ratio was about 5.6% of Canadian goods and approximately 16% for other countries.

“While working to address extraordinary trade problems with the US, it is important that we do everything we can to maintain this unique advantage for Canadian workers and businesses.” He said.

Since he returned to the White House in January, Trump has implemented tariffs or raised on goods from around the world and threatened to go higher while trying to negotiate the trade agreements he deemed suitable for the United States.

US Ambassador to Canada Pete Hoekstra said that Canada had endangered trade talks by keeping the opposite tariffs in place and that he “pulled the carpet USMCA from the carpet USMCA” last week.

Washington is also fighting with some Canadian politicians Trump and the Retoric that opposes the US negotiation team.

“They will attack them personally, not politics, but personally attack them,” Hoekstra said. He said. “Again, this is a Canada decision. All we do is answer it.”

Carney said on Friday, the focal point now will now return to accelerating negotiations on automobile, steel, aluminum and timber and other important sectors before a planned examination of the USMCA Free Trade Agreement next year.

The United States put a 50% tariff on all steel and aluminum imports, except for those coming from the UK and copper imports. It also applied 25% to aluminum imports.

Canada placed 25% tariffs in American steel, aluminum and cars. Carney will stay in place for now.

Economists warned that the US steel and aluminum tariffs are “extremely destructive” because the US is an important supplier of both metals. The Canadian companies reported as a result deductions and contract cancellations.

Considering how intertwined three North American countries are intertwined in automobile construction, automobile production may also be vulnerable. Typically, a car passes many times as it is brought together and preparing to be sold as the boundaries between the USA, Canada and Mexico.

Ontario, the center of the automobile industry in Canada, reported that it has lost 38,000 jobs in the last three months, and most of them are in production.