Tariffs dispute between US and Canada
The trade war between the US and Canada has flared up again. After talks between the two countries broke down, the US imposed 50-percent tariffs on a slew of Canadian goods ranging from ice hockey sticks to furniture and wine. The tariffs came into force on Saturday. Canada's Prime Minister Mark Carney has announced retaliatory tariffs that will take effect from 8 September, mainly on products from the US steel and dairy sectors.
Self-destructive West
Canada and the US's failure to reach an agreement will have negative repercussions beyond their own borders, The Daily Telegraph writes:
“What signal does it send to other countries, notably China, to see two G7 nations damaging their trade relations in this way? ... Canada is the top destination for US goods, while it exported 75pc of its products south. The two countries enjoy one of the largest bilateral commercial relationships in the world and to jeopardise it in this way is madness. ... There are enough threats to the West from malign global actors without driving a wedge wantonly between two of its most stalwart democratic pillars.”
Carney up for the fight
Mark Carney is showing backbone and a willingness to take risks, Corriere della Sera comments with approval:
“In the trade war between Washington and Ottawa, there is only one winner for the time being: Canadian whisky. Light, ideal for cocktails and in the premium segment of high enough quality to replace American bourbon. ... Everything else is a gamble for the liberal Prime Minister Mark Carney, who was triumphantly elected last year to replace the beleaguered Justin Trudeau in the showdown with Trump's America. On Friday, that gamble backfired. Since midnight, new 50-percent US tariffs apply to thousands of Canadian products worth 20 billion dollars, from timber to ice hockey sticks. Carney's announced retaliatory measures come into force on 8 September, 'dollar for dollar'.”
A setback for Team Trump too
The trade war with Canada also comes at a bad time for Washington, according to De Volkskrant:
“It's clear that the escalation of the trade conflict comes at an inopportune moment for the US government. Last week, concerns on the financial markets about rising US national debt intensified, partly due to the war in Iran. On top of that, inflation in the US is still not under control, with consumers complaining about the fuel prices as well as rising interest rates on mortgages, credit cards and car loans. And the mid-term elections are due to take place in early November.”