The Canadian Global Affairs Institute says the global response to U.S. tariffs on imported aluminum and steel is more likely to be effective that if Canada was to respond on its own.
In retaliation for U.S. tariffs on imported aluminum and steel Canada has imposed 16.6 billion dollars in tariffs on U.S. products sold to Canada.
Collin Robertson, the Vice-President and a Fellow of the Canadian Global Affairs Institute, points out the irony is that, while Canada is the biggest supplier of steel to the United States, the United States has actually been running a trade surplus with Canada when it comes to steel.
The tariffs have just been applied as of July 1st and it’s really too early to assess their impact on the American consumer. If it was simply Canada that were applying these tariffs I would say they would have minimal effect. But the U.S. has taken this global action and met with kind of a global response, particularly from its biggest suppliers off steel, that is the European Union and Mexico as well as Canada.
I should point out, while Canada has put tariffs of about 12 billion dollars worth of tariffs on American steel imports, it’s taking action on another four billion dollars in products because that represents the surplus that the U.S. enjoyed and that’s why we’re going after things like ketchup and chocolate and toilet paper.
These products that we’ve picked are produced in the districts of members, both Democrat and Republican, of the key trade committees, the House Ways and Means Committee and the Senate Finance Committee as well as other Congressional leadership.
We’ve done that in tandem with Mexico and the European Union so that we have maximum effect. We’re hoping that this will have an impact on members of Congress who in turn will take their complaints to the white house but it’s still too early to tell.
~ Collin Robertson, Canadian Global Affairs Institute
Robertson says U.S. steel aluminum and importers may simply pay the tariffs because they don’t want to disrupt existing supply chains.