America Has decided not to back down from the decision to put tariffs on Canada and Mexico. This tariff has come into effect from Tuesday. Now in response, Canada has also played its leaves. Amid growing trade war, Canada has announced a counter -tariff on the US on Tuesday. Canada said it would impose counter -tariffs on additional imports of $ 125 billion Canadian dollars from the US. It will start with 25% tariff on imports of 30 billion Canadian dollars from Tuesday. The move has been taken by US President Donald Trump on Monday after rejecting the possibility of withdrawing the tariff’s decision on Canada and Mexico. Trump has also signed an order to increase tariffs on China. Trump announced tariffs on imports from Canada and Mexico last month, but the decision was on hold.
Tension will increase between America and Canada
Tension between the two countries may increase after this action of Canada. Canadian Prime Minister Justin Trudeau has said that if Donalt Trump proceeds with his proposed tariff on Canadian items, our tariff will also be applicable. Trudeau added, “Our tariffs will remain in force until the US trade action is withdrawn and if the American tariffs are not finished, we are actively discussed with the provinces and regions to pursue many non-tariff measures.” Trudeau also said that Trump’s tariff has no justification.
Inflation will increase in America
“Due to the tariff imposed by the US, Americans will have to pay more for grocery, gas and cars due to tariffs imposed by the US and may potentially have to lose thousands of jobs.” He said, “Tariffs will disrupt incredibly successful business relations. They would violate the trade agreement on which President Trump had a conversation in his previous term.” Tariffs imposed on Canada and Mexico can disrupt supply chains for major industries such as automobiles and construction materials. This will increase inflation.
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