Trump imposed penalty penalty against Canada
Trump imposed penalty: Donald Trump has already set up with China and Mexico. Now also the trade dispute with the northern neighbors continues to grow.
The trade disputes between the neighbors United States and Canada are threatening to escalate. “Canada is very crude to the US,” said American President Donald Trump on Tuesday in Washington, signing a decree on agricultural policy. Asked if he was afraid of a “trade war” with Canada, Trump said, “No.”
The United States had previously announced that it would impose a penalty of 20 percent on Canadian softwood imports. American Trade Minister Wilbur Ross accused Canada of violating trade agreements. This concerns the allegation of prohibited subsidies for the Canadian timber industry.
The Canadian government sharply criticized the accusations that they were unfounded. The move will increase the cost of American families who want to build or renovate houses. The Canadian government would vigorously defend the interests of the Canadian softwood industry. Ross admitted that the costs could go up. According to the US Department of Commerce last year, the United States drove 5,6 billion dollars of softwood timber from Canada.
Deficit with Canada is $ 11 billion
Canada is the most important trade partner in the United States after China. Last year, however, the US deficit in trade with Canada was more than 11 billion dollars.
Between the United States and Canada there is also a dispute over the trade of dairy products. The American President Donald Trump prompted Canada on Tuesday on Twitter to make the dairy business in the United States very difficult.
“We will not let that sit on us.”
The American dairy industry had accused Canada of getting more and more cheap milk into the United States as a result of a new price policy. In addition, Canada is blocking the import of American milk on the other side. This leads to considerable economic difficulties for American dairy farmers. Canada rejected the accusations.