Send this page to someone via email This week, U.S. President Donald Trump announced he will slap steep tariffs on Canadian aluminum and steel and in retaliation, Canada vowed to impose a slew of hefty countermeasures designed to hit Trump where it hurts. But how much will those measures hurt Canadian and American consumers? READ MORE: Donald Trump takes another swipe at Canada’s ‘trade barriers,’ treatment of U.S. farmers On Thursday, Trump said he would not renew temporary exemptions for Canada and several other American allies from import duties of 25 per cent on steel and 10 per cent on aluminum that were first imposed in March and go into effect immediately. Hours later, Prime Minister Justin Trudeau and Foreign Affairs Minister Chrystia Freeland announced $16.6 billion worth of Canadian tariffs that will be applied on July 1. Story continues below advertisement Those Canadian tariffs target everything from whisky to washing machines and peanut butter to pedicure products — in addition to steel and aluminum. “This is $16.6 billion of retaliation,” Freeland said Thursday. “This is the strongest trade action Canada has taken in the post-war era. This is a very strong response, it is a proportionate response, it is perfectly reciprocal. This is a very strong Canadian action in response to a very bad U.S. decision.” READ MORE: Donald Trump takes another swipe at Canada’s ‘trade barriers,’ treatment of U.S. farmers Here’s what consumers on both sides of the border may potentially pay more for as a result. June 1 Essentially, consumers can expect to pay a little more for American-made products largely made of steel and aluminum. Story continues below advertisement Vehicles Walid Hejazi, associate professor of international business at the University of Toronto’s Rotman School of Management, suggests that Canadians will likely see a bump in the price of U.S.-made vehicles. “So, now what will happen is that cars that are not made in the U.S. will be less expensive,” Hejazi said. “The steel and aluminum industry in the U.S., those people are unbelievably happy. Every other industry that uses steel, they are infuriated.” READ MORE: Canada retaliates against U.S. steel, aluminum tariffs, announces dollar-for-dollar ‘countermeasures’ “So, now everything in the U.S. that uses steel, those prices are going up and that’s going to hurt the car industry,” Hejazi said. Unifor, which represents Canadian auto industry employees, said the tariffs against Canada will hurt the auto industry on both sides of the border, resulting in higher costs for consumers. “Canada must take swift action to defend Canadian industries & workers for unjust attacks by the U.S.,” Unifor said in a tweet after the tariffs were announced Thursday. “The auto supply chain is completely intertwined. A cost increase of this magnitude will drive consumers directly into the arms of Japanese carmakers,” Unifor national president Jerry Dias said in a statement in March when the tariffs were first announced. Story continues below advertisement Recreation vehicles In March, U.S.-based National Marine Manufacturers (NMMA) also released a statement saying aluminum tariffs will make boat production more expensive. “While these tariffs are meant to protect American manufacturing, they do just the opposite. U.S. manufacturers, like those in our industry, which use American-made aluminum, depend on a competitive global market and fair pricing,” NMMA president Thom Dammrich said in the release. READ MORE: From pork to jeans — countries threaten tariff retaliation for U.S. steel, aluminum duties “The implementation of these aluminum tariffs, in combination with the additional, even larger tariffs on aluminum sheet proposed by the Department of Commerce, will drive up the costs of the aluminum used to manufacture more than 111,000 aluminum boats, such as pontoons and fishing boats, which make up 43 per cent of new powerboat sales each year.” Polaris, which manufactures snowmobiles and all-terrain vehicles, said in March it could expect a bump in cost of about one per cent. Chief executive officer Scott Wine told Reuters that the company spends more than $300 million annually on steel and aluminum and Polaris would have to “mitigate the inevitable price increases from our domestic steel suppliers” as a result of the tariffs. Canned products Products packaged in aluminum, such as beer, could cost more for Canadians after the tariffs are implemented. Story continues below advertisement In February, a letter released jointly by several organizations whose products are packaged in aluminum — including PepsiCo, Coca-Cola, the Beer Institute, etc. — warned that tariffs would make it more expensive to brew and package beer. The letter claimed that a 10 per cent tariff on aluminum would cost beer and beverage producers $256.3 million, a 20 per cent tariff would cost $512.5 million and a 30 per cent tariff would run $768.8 million. Canada’s countermeasures on July 1 While Trump’s tariffs target steel and aluminum, the Canadian tariffs are extensive. Forty-four types of steel and steel alloy products will be hit with the 25 per cent tariff. As well, 84 types of other products are being slapped with the 10 per cent tariff. READ MORE: What U.S. steel, aluminum tariffs mean for Canadians — and their wallets Which goods are included on that list? Yogurt, coffee, prepared meals like frozen pizza and dinners, detergent, whiskies, beer, lawnmowers, heaters, sleeping bags, mattresses, and a range of office supplies including felt-tip pens. Also on the list of 10 per cent tariffs are non-household dishwashing machines, combined fridge-freezers, household laundry machines, sailboats, motorboats, chocolate, maple syrup, licorice, toffee, nut butters, jams, orange juice, cucumbers and gherkins, soy sauce, ketchup, mustard, mayonnaise, flavoured water, shaving products, hair lacquers, manicure and pedicure products, and soups. Story continues below advertisement WATCH BELOW: Peanut butter tariff: EU threatens one in response to proposed U.S. steel, aluminum duties 1:16 Peanut butter tariff: EU threatens one in response to proposed U.S. steel, aluminum duties Peanut butter tariff: EU threatens one in response to proposed U.S. steel, aluminum duties – Mar 7, 2018 All those tariffs will work by imposing a levy on manufacturers when they ship their goods north of the border and in turn, those companies will likely pass on those costs to consumers.<doc-sep>All three have already announced retaliatory measures as the US follows its new policy, which has been attacked as "protectionism, pure and simple" by the EU.<doc-sep>Early in June, President Donald Trump announced steel and aluminum tariffs on Canada. Canada responded with tariffs of their own on billions of dollars worth of US goods. Using US exports data, the states hit hardest by the tariffs would be Ohio, Michigan, New York, Pennsylvania, and Illinois. Canada isn't taking President Donald Trump's decision to hit the country with steel and aluminum tariffs lying down. Prime Minister Justin Trudeau announced that Canada will impose retaliatory tariffs on $12.8 billion worth of US goods in response to Trump's metals tariffs. The list of goods set to get hit by the Canadian tariffs varies from industrial steel to sleeping bags. Trudeau said the tariffs were not designed to hurt the American people, but rather defend Canada's interests and send a message to the Trump administration. Using US Census Bureau data on exports and the list of goods subject to the tariffs, Business Insider determined exactly which states will get hit hardest by the Canadian crackdown. The biggest losers from the US-Canada trade fight are industrial states in the Midwest: Ohio would be the hardest hit. The state sent $1.75 billion worth of goods to Canada in 2017 that could fall under the tariffs. Michigan would be close behind, with $1.17 billion in goods that could be subject to tariffs. They are followed by New York ($1.17 billion), Pennsylvania ($1.14 billion), and Illinois ($1.02 billion). The tariffs will go into place on July 1, Canada's government said, and will stay in place until the US removes the steel and aluminum restrictions.<doc-sep>The Trump administration on Thursday slapped tariffs on steel and aluminum imports from Canada, Mexico and the European Union, prompting outrage from America’s closest allies and major trading partners and setting off a trade war that could see U.S. consumers pay more for everything from canned soup to cars. The move to implement tariffs under the guise of national security measures triggered strong response across the globe, including a firm reproach from Canadian Prime Minister Justin Trudeau, who denounced the punitive tariffs as "totally unacceptable" and "an affront," saying that the very idea that Canada could be considered a national security threat to the United States is "inconceivable." Canadian Foreign Minister Chrystia Freeland announced $12.8 billion in retaliatory tariffs, which she called "the strongest trade action Canada has taken in the post-war era." Mexico also responded to the taxes, saying it would impose tariffs of its own, and the European Commission promised legal action. U.S. Commerce Secretary Wilbur Ross confirmed to reporters in an early-morning phone call that the White House will add a 25 percent import tariff on steel and a 10 percent tariff on aluminum after trade talks crumbled ahead of a June 1 deadline that would have enabled exemptions. Market reaction was also swift: The Dow Jones fell sharply after the move was announced, dropping by 250 points as investors took measure of the impact of the ongoing trade tensions, and falling to 300 points after Canada's retaliation. The European Commission fired back at the White House's trade decision with a lawsuit, saying the E.U. “stands now ready to react to the U.S. trade restrictions on steel and aluminum in a swift, firm, proportionate and fully WTO-compatible manner," referring to the World Trade Organization. The E.U. said it would launch legal proceedings against the U.S. in the WTO on Friday. The level of tariffs to be applied will reflect the damage caused by the new U.S. trade restrictions on E.U. products, it said. Mexico’s Ministry of Economy released a statement saying, “Mexico deeply regrets and rejects the decision of the United States to impose these tariffs on imports of steel and aluminum from Mexico as of June 1, under the criterion of national security. Mexico will impose equivalent measures to various products in the face of U.S. protectionist measures.” President Donald Trump, who has made no secret of his desire to implement more protectionist trade policies, announced in March that he planned to institute tariffs, saying, "People have no idea how badly our country has been treated by other countries.” "These tariffs are totally unacceptable," said Trudeau in a press conference Thursday afternoon. "Over the past 150 years, Canada has been America's most steadfast ally. These tariffs are an affront to the long-standing security partnership between Canada and the United States, and in particular, to the thousands of Canadians who have fought and died alongside American comrades-in-arms." Starting July 1, Canada will levy "dollar-for-dollar" tariffs on a selection of American-made goods, said Freeland, announcing that the government had drawn up two lists of products that would be subject to either 25 percent or 10 percent taxation, until the U.S. changed its position. "This is not about the American people. We have to believe that at some point their common sense will prevail. But we see no sign of that in this action today by the U.S. administration," said Trudeau. Experts who support free trade warned at the time about the potential consequences. “Overall, the idea of imposing tariffs to help the steel and aluminum industries is really misguided and will lead to a decline in overall economic activity.” "It will open a Pandora's box," said Dan Ikenson, director of the Cato Institute’s trade policy studies center. Robert Scott, senior economist at the left-leaning Economic Policy Institute, said tariffs that failed to distinguish between America's trade allies and countries like China, which the U.S. has accused of illegal trade practices, could make it more difficult resolve trade disputes. “What you try to do when you retaliate is push politically where it really hurts,” said Jacob Kirkegaard, a senior fellow at the Peterson Institute for International Economics. The retaliatory tariffs suggested so far primarily target Republican-leaning states, but if the tit-for-tat continues, a broader swath of the American economy could be drawn into the dispute. And in the long run, higher prices on imported goods would be something no consumers could escape. “Overall, the idea of imposing tariffs to help the steel and aluminum industries is really misguided,” said Dan North, chief economist at Euler Hermes North America. “This will lead to a decline in overall economic activity.” The roughly 150,000 jobs that could potentially be saved in those industries is dwarfed by the nearly 2 million jobs at risk in industries that use imported steel and aluminum, North said. “Those expenses will not only destroy jobs, but flow through to consumers.” "This is dumb," Sen. Ben Sasse, R-Neb, said in a statement. “Europe, Canada and Mexico are not China, and you don’t treat allies the same way you treat opponents. We’ve been down this road before — blanket protectionism is a big part of why America had a Great Depression. 'Make America Great Again' shouldn’t mean 'Make America 1929 Again.'"<doc-sep>
Canada announced tariffs on US goods in response to President Donald Trump's steel and aluminum tariffs. The Canadian government said they were targeting 16.6 billion Canadian dollars, or roughly $12.8 billion US dollars. Business Insider found in an analysis that the total value of the goods Canada listed as subject to tariffs is more than that stated goal. The Canadian government announced retaliatory tariffs on US goods that look to go beyond the value of US tariffs on imports of Canadian steel and aluminum. Canadian Prime Minister Justin Trudeau and Foreign Affairs Minister Chrystia Freeland announced the responsive measures to President Donald Trump's tariffs on steel and aluminum from the US's northern neighbor. Freeland and the Canadian government pegged the total value of the goods subject to the Canadian tariffs at 16.6 billion Canadian dollars, or roughly $12.8 billion US dollars. Those values are roughly equal to that of the Canadian steel and aluminum exports to the US. "In response to these measures, Canada intends to impose surtaxes or similar trade-restrictive countermeasures against up to C$16.6 billion in imports of steel, aluminum, and other products from the US, representing the value of 2017 Canadian exports affected by the US measures," Canada's government wrote on its official website. A spokesperson for the Canada's Global Affairs office also confirmed to Business Insider that the target was to place tariffs on 16.6 billion Canadian dollars. But after totaling the value of Canada's list of US goods subject to tariffs using import data, Business Insider found that the value of these exports is equal to roughly just over $15 billion US dollars, or 19 billion Canadian dollars. The spokesperson said the government stands by its analysis that the total value of the goods subject to tariffs is 16.6 billion Canadian dollars. Business Insider used 2017 import data from Canadian statistics agency StatsCan and the Harmonized System code for each product on the tariff list. The Harmonized System contains a unique code for a product to distinguish it from other materials and is used to standardize the identification of goods moving through the international trade system. Another analysis, using the US Census Bureau, would paint the retaliatory measures as even more severe. Based on an analysis of US export data, the value of the goods subject to tariffs was $15.72 billion, well above the target level. While the tariffs being higher than expected could certainly have ramifications for US businesses, experts say they would be permitted under international law. Canada argued that the retaliatory tariffs on US goods were legal under World Trade Organization rules since they were equivalent to what they viewed as an improper US action. Debbie Shon, a partner at the law firm Quinn Emanuel and a former official in the US Trade Representative's office under President Bill Clinton, told Business Insider that the exact value of the tariffs doesn't have to be exactly the same. "It doesn't have to be exactly the same, dollar for dollar," Shon said. "The other country just has to show that the response was commensurate to the original action."