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

CN train derailment cleared between Terrace and Prince Rupert

The CN mainline is now open, following a train derailment mid-way between… Continue reading

Trial finishes for suspect in Burns Lake man’s murder

Closing submissions concluded at the Supreme Court in Prince George on July… Continue reading

Lightning starts nine small fires on July 5-7

Several wildfires started in the Northwest Fire Centre region over the July… Continue reading

Mill blast safety measures review ends

The government is wrapping up a review on how industries and other… Continue reading

Magician wows Burns Lake children

Magician Leif David entertained dozens of children in the Burns Lake Public… Continue reading

Rich the Vegan scoots across Canada for the animals

Rich Adams is riding his push scooter across Canada to bring awareness to the dog meat trade in Asia

Vancouver Island teens missing after vehicle found ablaze near Dease Lake, BC

RCMP say a body discovered nearby not one of the missing teens

A year later, ceremony commemorates victims of the Danforth shooting

It’s the one-year anniversary of when a man opened fire along the bustling street before shooting and killing himself

Japanese Canadians call on B.C. to go beyond mere apology for historic racism

The federal government apologized in 1988 for its racism against ‘enemy aliens’

B.C. VIEWS: NDP pushes ahead with Crown forest redistribution

This isn’t the time for a radical Indigenous rights agenda

Two dead in two-vehicle crash between Revelstoke and Golden

RCMP are investigating the cause of the crash

Ottawa fights planned class action against RCMP for bullying, intimidation

The current case is more general, applying to employees, including men, who worked for the RCMP

Alberta judge denies B.C.’s bid to block ‘Turn Off the Taps’ bill

He said the proper venue for the disagreement is Federal Court

Most Read