US, Canada trade war?

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Trump has also tried to pressure Canada and Mexico into agreeing to rewrite the 24-year-old North American Free Trade Agreement to shift more auto production and investment to the United States.

Freeland also said they are prepared if Trump escalates the trade war. "Canada has no choice but to respond in accordance with the rules of global trade".

Freeland said there are no grounds for further USA tariffs in response to Canada's actions.

Freeland said there are no grounds for further USA tariffs in response to Canada's actions.

The penalties will add 25 percent to the cost of United States steel, and 10 percent to aluminum and consumer goods. The final tariff list is scheduled to be released this week, along with measures to support the domestic steel sector.

The announcement from Canada came the same week as European tariffs kicked in. US manufacturers that sell in Canada include Larson Boats of Minnesota and Brunswick Corp. of Lake Forest, Illinois.

"If things go bad for them, they go bad for us", he said. "We will be pushing the federal government to ensure that our industry and businesses are supported first and foremost through this steel tariff dispute".

The tariffs could add C$10,000 to the cost of a wakeboard boat from Malibu Boats Inc. of Tennessee.

Last week, U.S. Commerce Secretary Wilbur Ross expressed concerns about the world's overproduction and overcapacity of steel, saying the U.S. tariffs against Canada and other allies are created to force them into action.

Trudeau and U.S. President Donald Trump spoke late Friday. The auto tariffs would disrupt that. "People are more anxious about what happens to autos".

Jean Simard, CEO of the Aluminium Association of Canada, said his organization asked the government to pull from the list as many products that cross the border multiple times as it could, explaining that it can only be harmful if the same product is dinged by tariffs on both sides.

There are mixed views on how quickly Canada should proceed with its retaliation.

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"Canada is America's biggest customer".

Canadians are particularly anxious about auto tariffs because the industry is critical to Canada's economy.

But others worry the government is moving too fast.

Canada and the US are among the world's two largest trading partners with an estimated $ 673.9 billion worth of goods and services exchanged in 2017, with the US scoring a small surplus ($ 8.4 billion), according to the US Trade Representative's office.

The counter-measures come in direct response to the illegal, unjustified and unwarranted tariffs on steel and aluminum recently imposed by the U.S.

Prime Minister Justin Trudeau has called the American tariffs "absurd" and "unacceptable".

"I believe Trump is a bear, we shouldn't be poking him too much, the bear will start roaring", said Bob Verwey, president of Owasco Inc., an auto and RV sales company.

Many of the United States products were chosen for their political impact, rather than economic.

"There is and will be an impact, absolutely, to not only Canadian industry, but American industry and also consumers", Bilous said.

Canada's foreign minister has vowed the country will "not back down" as the trade war with the US escalates. The measures may be announced as early as next week, people familiar with the plans said. Finance Minister Bill Morneau had said on Tuesday the details of that package would be announced in "the coming days".

Canada also faces risks from the U.S. -China trade dispute. Canada sends three quarters of its exports to the United States, so any slowdown in American growth will affect Canada.

"If you get a major trade war, the probability of recession is real", said Perrault.

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