The U.S. is scheduled to impose more tariffs on Canada, hitting about $20 billion dollars worth of goods, as trade negotiations between the two neighboring countries hit an impasse. The U.S. is scheduled to impose new 50% tariffs on Canada, hitting about $20 billion worth of goods. Trade negotiations to head off those tariffs between the neighboring countries have been going on for weeks.
Canada's Prime Minister Mark Carney and President Trump spoke by phone Monday afternoon. That's according to Carney's office. But so far, the two countries have not reached a resolution.
NPR's Emily Feng is tracking this story. So we've seen multiple rounds of tariff fights between the U.S. and Canada since Trump returned to the White House. Explain what would be included in this latest threatened round.
FENG: So you're totally right. There's been this back-and-forth of tariffs from both countries. This round, the U.S. trade representative says, is retaliation for Canadian tariffs on American goods.
Those tariffs were in response to an even earlier round of U.S. tariffs last year. So the tariffs we're talking about today are potentially 50% tariffs on Canadian goods ranging from cement to wine to hockey sticks. That would cover about $20 billion worth of goods, which sounds like a lot, but in reality, it's just about 5% of total Canadian exports to the U.S.
Overall, I should note, trade between the U.S. and Canada is still mostly tariff-free because of a North American trade agreement called the USMCA that was signed during Trump's first term. But these potential tariffs would also not apply to Canadian exports on things like critical minerals and fish. But the real significance of these proposed tariffs are symbolic.
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