Canada hit back at the USA with retaliatory tariffs on American summertime essentials including Florida orange juice, ketchup and Kentucky bourbon in its opening salvo in a trade war with President Donald Trump.
Canada and Mexico initially were exempted from the U.S. metals tariffs - as was the European Union - but Trump allowed the duties to take effect June 1 after talks stalled to revamp the 1994 trilateral North American Free Trade Agreement (NAFTA).
Trump has slapped tariffs on billions of dollars worth of steel and aluminum imports from China, the European Union, Canada and others, prompting retaliation against USA products. The E.U. and Canada have filed cases against the U.S.at the World Trade Organization (WTO).
Baruah expressed concern over the Trump administration's threat to impose further tariffs, this time on the auto industry, He noted that 25 to 35 per cent of a vehicle assembled in the U.S.is composed of parts from around the world.
The American goods that Canada has placed tariffs on include ketchup, lawn mowers and motorboats. Canadian Foreign Minister Chrystia Freeland announced the tariffs at a steel facility in Hamilton, Ontario where she was flanked by brawny workers in yellow hardhats.
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"The bottom line is that some of the people buying American products may switch to the Canadian products, that's one source of increased profit for the Canadian producers", says Littler.
"At the G7, the president actually proposed that they get rid of all tariffs and drop all barriers and have really great trade, and they refused that", Sanders said. "We will not escalate and we will not back down", she said, while noting that this trade action was the strongest Ottawa has taken since World War II.
Trump railed against his trading partners during the meeting, according to sources, and withdrew his support for a joint communique after leaving the summit, angering and bewildering some of Washington's closest allies.
"I don't see how (Trudeau) is going to get this done", he said.
Prime Minister Justin Trudeau has said he plans to stay in touch with the outgoing Mexican president, but hopes to work closely with the country's new president to "build on the vibrant partnership between our two countries".