19 billion euros

US special tariffs: Canada puts together retaliatory package

The focus is primarily on steel and aluminum products.

(Bild: ALLISON DINNER)

Canada has put together its own billion euro package in response to the US special tariffs on steel and aluminum. The retaliatory measure is to include counter-tariffs worth 19 billion euros. At the same time, the Canadian government is calling for moderation in the trade war.

"In a few days, American factories could cease operations," announced Canadian Industry Minister Francois-Philippe Champagne during a press conference. Finance Minister Dominic LeBlanc said that Canada's counter-tariffs would come into force at midnight. 

Of Canada's counter-tariffs, about half are on steel and aluminum products and the rest are on other U.S. goods such as computers, sports equipment and cast iron products.

Canada is the largest foreign supplier of steel and aluminum to the US. Trump had initially threatened Canada with doubling the tariffs on these products from the neighboring country to as much as 50 percent. However, he later backed down when the head of government of the Canadian province of Ontario, Doug Ford, agreed to suspend a 25 percent surcharge on electricity supplies to the US states of Minnesota, Michigan and New York.

Nothing will end the surcharges on aluminum and steel already introduced by US President Trump until domestic manufacturing is strengthened, US Commerce Secretary Howard Lutnick told Fox Business.

Trump strategy raises question marks
Since taking office again in January, Trump has imposed or threatened to impose tariffs on numerous countries. He is bothered by his country's trade deficits, wants to encourage companies to invest in the USA and provide more protection at the US borders. In the case of Canada, he has repeatedly flirted with the idea of annexing the country.

Recently, however, concerns have arisen on Wall Street that the Republican could overdo it and possibly even plunge the world's largest economy into a recession. The renowned "Wall Street Journal" spoke of the "dumbest trade war of all time".