What’s the latest on the Canadian tariffs? The Canadian government has been at the center of trade disputes and negotiations in recent years, particularly with the United States. As of now, here’s an update on the current state of Canadian tariffs and trade relations.
The Canadian government has implemented various tariffs in response to the United States’ imposition of steel and aluminum tariffs. In response to the U.S. tariffs on Canadian steel and aluminum, Canada imposed retaliatory tariffs on a wide range of U.S. goods, including steel, aluminum, pork, and various agricultural products.
However, the situation has evolved over time. In September 2018, the U.S. and Canada reached a tentative agreement on a new trade deal, which was later finalized and named the United States-Mexico-Canada Agreement (USMCA). The USMCA replaced the North American Free Trade Agreement (NAFTA) and aimed to address some of the concerns that led to the initial tariffs.
Under the USMCA, Canada has agreed to reduce its tariffs on U.S. steel and aluminum, which were previously set at 25% and 10%, respectively. In return, the U.S. has agreed to remove its tariffs on Canadian steel and aluminum. However, some Canadian tariffs on U.S. goods remain in place, particularly on agricultural products.
One of the most significant remaining issues is the dairy market. Canada has a supply management system for dairy products, which has been a source of contention with the U.S. The USMCA includes provisions that allow the U.S. to export more dairy products to Canada, but some Canadian tariffs on U.S. dairy products are still in place.
Another ongoing issue is the softwood lumber dispute between Canada and the U.S. The U.S. has long accused Canada of selling softwood lumber at unfairly low prices, leading to the imposition of tariffs on Canadian lumber exports. While the USMCA includes some changes to the softwood lumber agreement, the full resolution of this issue remains uncertain.
The Canadian government has been actively engaged in negotiations with the U.S. to resolve these remaining issues. In February 2021, Canada and the U.S. announced that they had reached a preliminary agreement on the dairy market, which could pave the way for the removal of Canadian tariffs on U.S. dairy products.
In conclusion, the latest on Canadian tariffs shows that while progress has been made in some areas, there are still unresolved issues that need to be addressed. The Canadian government remains committed to negotiating fair and equitable trade agreements that protect its industries and ensure a balanced trade relationship with the United States.
