A trade war between the U.S. and Canada may be looming?
Some international leaders fear a trade war is looming between the U.S. and Canada. Canada is threatening the U.S. with tariffs and partial suspending of the USMCA.
The country’s Deputy Prime Minister and Trade Minister sent a letter to Senators warning them to back off tax credits on American-built EV’s. Canada says that those credits would effectively result in a 34 percent tariff on Canadian vehicles, which would hurt American auto workers and violate terms of USMCA. Also, it compiled a list of counter-tariffs.
According to Mary Ng, International Trade Minister, “The letter lays out what Canada could be doing, applying tariffs to American exports in a manner that will impact American workers in the auto sector, along with other sectors. It could potentially be dairy TRQ’s, it could potentially be the implementation of U.S. copyright in USMCA. There are retaliatory actions that we could be taking.”
Of course it all depends on the passage of Build Back Better in the Senate. Its future became more uncertain late last night, when some Democrats suggested they put the bill aside for now, and focus instead on midterm elections.