Washington, DC, September 9: The trade dispute between the United States and Canada escalated further after President Donald Trump ordered new restrictions on Canadian imports and directed federal agencies to remove Canadian products from major US government purchasing programmes.
The latest measures target Canadian goods in the automotive, dairy and alcoholic beverage sectors and modify additional tariffs imposed on Canadian products. The White House said the actions were taken in response to what the administration described as discriminatory Canadian trade practices and the breakdown of bilateral negotiations.
Under the new measures, certain Canadian dairy products and alcoholic beverages will be excluded from the US market from September 29. The administration has also ordered the exclusion of certain Canadian products linked to the ongoing dispute over Canada’s treatment of US automobiles and auto parts.
The White House said additional duties imposed earlier on Canadian products were temporarily suspended for three days in August after Canada committed to address the disputed trade measures. According to the administration, the suspension expired on August 22 after negotiations failed to produce an agreement.
Trump also directed the General Services Administration and the Office of the US Trade Representative to begin removing Canadian-origin products from federal procurement schedules until Canada provides what he called full and fair reciprocity for American businesses and farmers.
The action affects the GSA’s Multiple Award Schedules, which Trump said account for more than USD 50 billion in annual government purchases.
Canada, meanwhile, brought its retaliatory tariffs on US goods into force on September 8. The Canadian government said the counter-tariffs would cover approximately USD 27.6 billion worth of US imports, with rates of 15, 25 and 50 per cent depending on the product. Targeted sectors include steel and aluminium, dairy, appliances, agricultural equipment, pulp and paper, plastics and electronics.
The measures follow the breakdown of trade negotiations between Washington and Ottawa in August and mark a further deterioration in economic relations between the two neighbouring countries.
Both governments have defended their actions as responses to unfair or discriminatory trade measures by the other side, raising concerns over the broader impact on businesses and consumers as the dispute continues. (ANI)
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