In this March 5, 2018 photo, a worker manipulates coils of steel at Xiwang Special Steel in Zouping County in eastern China’s Shandong province. China says it “firmly opposes” U.S. President Donald Trump’s tariff increase for imported steel and aluminum but gave no indication whether Beijing might impose its own measures in response. (Chinatopix via AP)

Canadian retaliatory tariffs lifted as U.S. kills steel aluminum penalties

Canada’s ratification of the new North American trade agreement hinged on the tariffs coming off

Canada collected more than $1.27 billion from the retaliatory tariffs on U.S. products over the last year and all of it will go to the Canadian steel and aluminum industry even though the steel trade war with the United States is over.

Canada and the United States reached an agreement Friday to see the U.S. lift the nearly year-old import duties on steel and aluminum President Donald Trump imposed last June arguing the imports threatened national security. Canada had always called the tariffs illegal and absurd and demanded they be lifted immediately.

Canada’s ratification of the new North American trade agreement also hinged on the tariffs coming off.

That officially happened Monday and as a result Finance Minister Bill Morneau said Canada had also lifted the retaliatory duties Canada imposed on U.S. steel and aluminum and more than 70 other U.S. products including licorice, coffee, sleeping bags and ketchup.

“The removal of tariffs and countermeasures is a true win-win for everyone involved, and great news for Canadian and American workers, for our communities, and our economies,” Morneau said in a written statement.

Trump tweeted late Sunday that U.S. farmers “can begin doing business again with Mexico and Canada.”

READ MORE: Long-awaited end to Canada’s tariff standoff with U.S. finally at hand

READ MORE: Trudeau offers Canadian lumber, steel to help rebuild Notre Dame Cathedral

“They have both taken the tariff penalties off of your great agricultural product,” Trump wrote. “Please be sure that you are treated fairly.”

A Canadian official, speaking on the condition of anonymity because he was not authorized to speak publicly on the matter, said Trump’s tweet reinforces to Canada that “our retaliatory tariffs were key to resolving this.”

The Canadian tariffs were carefully selected to both match the dollar value of the tariffs Canadian companies were paying to the U.S., as well as to target popular products in states of prominent Republican lawmakers or swing states where voters might voice their displeasure.

That included, for example, Kentucky bourbon from the home state of Senate Majority Leader Mitch McConnell, and pickles, gherkins, lawn mowers and yogurt, which are all big industries in Wisconsin, the state of former House of Representatives Speaker Paul Ryan. Chocolate and toilet paper, key exports from Pennsylvania which is home to Hershey and the Scott Paper Company, were among the swing-state products targeted, as was Florida orange juice.

Canada’s tariffs imposed a 25 per cent surtax on U.S. steel imports, and 10 per cent on aluminum and the other 75 listed products. A Finance official said as of April 30, Canada had collected $1.27 billion from the retaliatory measures, but that figure is expected to climb as Canada Border Services Agency gets final reports from Canadian importers.

Canada announced a $2 billion aid package to the steel and aluminum industry to help them weather the impact of the U.S. trade war, including exempting Canadian companies from paying the import duties on steel and aluminum if they couldn’t source the product within Canada or had contracts requiring them to import from the United States.

Funds were also there to help with work sharing agreements, training and diversifying export markets.

Prime Minister Justin Trudeau indicated Friday that the funds to help the industry are not being erased even though the tariffs have been lifted.

“The financial assistance is still there,” he said. ”We made $2 billion worth of commitments last summer to support our industry. We’re going to continue to look at how the industry can continue to grow and invest.”

Mia Rabson, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

SD27 hires new finance manager

Barrett Gaunce is presently corporate controller for Northwest Territories Housing Corp. in Yellowknife

Two bodies found near Spences Bridge confirmed as those of missing Surrey men

Ryan Provencher and Richard Scurr have been missing since July 17

Would you support a rainbow crosswalk in 100 Mile House?

A weekly web poll from the 100 Mile Free Press

RCMP arrest man without incident after careless use of a firearm

A 55 year old male was arrested without incident by 100 Mile House RCMP on August 17

VIDEO: Could we BE any more excited? ‘Friends’ fans go crazy for merch

Movie theatres will show select episodes to mark the NBC series’ 25th anniversary

Bodies of two missing Surrey men found near Ashcroft

Ryan Provencher and Richard Scurr have been missing since July 17

Five hedgehogs quickly adopted after being left at BC SPCA

Lucky new owners picked up their pets from Maple Ridge branch on Aug. 20

B.C. cricket players get interrupted by racist remark

Community has had protocols in place for years to respond to prejudice

Groovy B.C. wedding a throwback to Woodstock ‘69

Couple hosts themed wedding 50 years after legendary festival

Nearly 50% of Canadians experience ‘post-vacation blues’: poll

48 per cent of travellers are already stressed about ‘normal life’ while still on their trip

More women may need breast cancer gene test, U.S. guidelines say

Recommendations aimed at women who’ve been treated for BRCA-related cancers and are now cancer-free

B.C. manhunt suspects left cellphone video before they died: family

Family member says Kam McLeod, Bryer Schmegelsky recorded final wishes

Most Read