Following the announcement by the US that it will impose tariffs on Canadian steel and aluminum shipments under Section 232, Chrystia Freeland, Canada’s foreign affairs minister, has stated that this decision by the US is totally unacceptable.
Ms. Freeland stated that, in response to the US measures, Canada intends to impose tariffs on imports of steel, aluminum and other products from the US - representing the total value of 2017 Canadian exports affected by the US measures, which totals $16.6 billion. “We are imposing dollar-for-dollar tariffs for every dollar levied against Canadians by the US,” the minister added.
Accordingly, Canada will publish two lists of goods: one list that will be subject to a 25 percent tariff; a second list that will be subject to a 10 percent tariff. Canadians will have a 15-day consultation period to express support for, or concerns about, the proposed countermeasures and the list of goods. The countermeasures will only apply to goods originating from the US and will take effect on July 1, 2018, and will remain in place until the US eliminates its trade-restrictive measures against Canada.
Ms. Freeland also stated that the unilateral trade restrictions by the United States are in violation of NAFTA and World Trade Organization (WTO) trade rules and added that Canada will therefore launch dispute-settlement proceedings under NAFTA Chapter 20 and WTO Dispute Settlement. Canada will also closely collaborate with like-minded WTO members, including the European Union, to challenge these illegal and counterproductive US measures at the WTO, she stated.