Donald Trump’s ill-advised trade war on our closest trading partners will not end well. It will not help American’s pocketbooks, it will hurt them. It will not bring back American jobs, it will eliminate them. If Trump could read, he would see that his type of economic and trade policies are hurtful to the country. Plain and simple.
Canada’s foreign minister has vowed the country will “not back down” as the trade war with the U.S. escalates.
On Friday, Ottawa unveiled plans to impose approximately $12.6 billion worth of tariffs on U.S. goods from July 1, following the example of other major U.S. allies.
The tariffs will apply to items such as yogurt, caffeinated roasted coffee, toilet paper and sleeping bags.
“We will not escalate, and we will not back down,” Foreign Minister Chrystia Freeland was quoted as saying by CNBC, adding the Canadian government was working closely with Mexico and the European Union.
The former’s tariffs on U.S. products such as apples, cranberries, whiskey, pork products and cheese were introduced on June 5, while the 28-country European bloc introduced a levy on more than $3 billion worth of U.S. goods on June 29.
Motorcycles, yachts and bourbons are just some of the goods covered by the tariffs imposed by the EU.
The decision taken by Canada, Mexico and the EU comes after President Donald Trump’s controversial announcement on trade, which levied 25 percent and 10 percent tariffs on aluminium and steel, respectively.
Last year, approximately 55 percent of Canada’s total steel imports came from the U.S., with the remaining 45 percent split among Brazil, China, South Korea and Turkey.
While Trump stated the plan was implemented to protect U.S. jobs, the move has enraged some of the country’s main trading partners, which have replied in kind.
However, a number of companies have already reported the introduction of tariffs has drawn a reactionary response, which has forced them to hike prices.
Brown-Forman, Jack Daniel’s parent company, said in a statement that the price of a 700 ml bottle of whiskey will increase by approximately 10 percent in Europe.
Meanwhile, motorcycle giant Harley-Davidson revealed on Monday that it was planning to shift some of its production overseas after EU tariffs rose from 6 to 31 percent.
The Milwaukee-based manufacturer justified the decision by saying the EU tariffs will increase the cost of a bike by around $2,000.
Harley-Davidson, which Trump has cited in the past as a company hurt by U.S. trade regulation, said the increased tariffs would cost it an extra $30 million to $45 million in 2018. The company did not comment on how many jobs would be shifted away from the U.S., but said that it would take between nine and 18 months to move production away from Wisconsin.
Following the news, Trump suggested the motorcycle manufacturer had “waved the white flag,” and blasting the company for taking production abroad.