The latest escalation in the trade war between the U.S. and Canada went into effect early Tuesday morning, with the U.S. banning Canadian products such as some dairy, alcohol and motorcycles.
In a statement, Canada-U.S. trade minister Dominic Leblanc said Ottawa has taken note of the ban but it’s first priority remains protecting and supporting Canadian workers, farmers, businesses and families.
It’s unlikely the new trade restrictions on Canadian products will have a significant effect on the country’s economy. But it does show the rift between Ottawa and the administration of President Donald Trump.
Still, the president remains confident that he will win a trade war with Canada.
"Over the next three or four weeks they’re going to come to us and they’re gonna say: 'We need to get rid of all the tariffs.' We’re going to win everything," Trump said. "They’re going to come in and they’re gonna say: 'Sir, we are sorry.' They treated the United States very, very badly. I think a deal will be made but it’s gotta be a fair deal."
Meanwhile, Washington, D.C.'s trade representative, Jamieson Greer, said Trump is comfortable with the trade situation with Canada and there’s no urgency on "our side."
Some American lawmakers have argued that it’s not true that the U.S. doesn’t need anything from Canada — pointing out the northern neighbor is America’s second-largest trading partner — and the North American market is highly integrated.
There has been no indication whether Ottawa will retaliate against the import bans.
