Canada's tariffs on U.S. goods take effect

Canada followed through on threat to enact new tariffs on U.S. goods July 1, while U.S. companies said that they are already feeling the pain of the European Union's newly enacted tariffs on U.S. motorcycles, bourbons, and other products.
By Rick Docksai | Jul 02, 2018
Around $12.6 billion of new Canadian tariffs on U.S. goods went into effect Sunday, as Canada followed through on threats to hit back against President Trump's imposition of duties on aluminum and steel. Canadian Foreign Minister Chrystia Freeland said last week that her country would "not back down" in its ensuing trade dispute with the United States.

"We will not escalate, and we will not back down," Freeland said. She added that her government is working closely with the European Union and Mexico, who have both also introduced new tariffs on certain U.S. imports.

Canada's tariffs extend to a range of U.S.-made food products, including apples, cranberries, cheese, pork products, and whiskey. The Canadian government first announced that the tariffs were forthcoming on June 5. Mexico enacted $3 billion of tariffs on U.S. food products that same day, after announcing the new tariffs the previous week.

The European Union followed with a June 29 announcement that it, too, will enact $3 billion of new tariffs on U.S. products. The European tariffs will hit a range of U.S. goods, such as bourbon, yachts, and motorcycles.

The EU's tariffs went into effect June 22, and they are already drawing negative reactions from U.S. businesses who warn of decreased sales and possible job losses. Motorcycle giant Harley-Davidson said that is moving production of motorcycles for European markets to manufacturing plants outside the United States, and whiskey- maker Jack Daniels' parent company, Brown-Forman, said that the price of a 700-ml bottle of whiskey will go up 10% in European markets, leaving it far less competitive against European brands.

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