look news india
Relations between North America’s two largest economies have reached an all-time low. The ongoing trade talks between America and Canada have suddenly transformed into a major economic war. Canadian Prime Minister Mark Carney halted trade talks in strong protest over ‘impractical’ conditions imposed at the last minute by the US. Frustrated by this decision, US President Donald Trump has announced to impose a hefty 50 percent import duty (tariff) on Canada, after which the Canadian PM has also warned of giving a reply to a brick with a stone.
Canada angry at America’s ‘final condition’
After suddenly breaking off the months-long trade talks, Canadian Prime Minister Mark Carney has adopted a tough stance and issued instructions to all his top negotiators to immediately return to Ottawa. Canada says US President Donald Trump’s administration was imposing conditions in the final round of negotiations that would prove economically harmful to Canadian industries and small businesses. While till a day ago, there was hope for an agreement between the two countries, Washington’s changed stance ruined the prospects of the entire agreement.
‘Dollar-for-dollar’ counterattack on 50% tariffs
Angered by this tough move by Canada, President Trump announced a 50 percent tariff on goods worth about 28 billion Canadian dollars coming from Canada from midnight. Responding immediately to Trump’s decision, PM Carney made it clear that Canada is not going to bow under any pressure. Taking a tough stance, he warned that whatever dollar tariff the US imposes on Canada, the country will also impose the same ‘dollar-for-dollar’ tariff on American goods.
Preparation to reduce dependence on America
Amidst this entire controversy, US Trade Representative Jamieson Greer blamed Canada for this failure, saying that America had offered very concessional terms, but Canada backed out of its commitments. At the same time, after the breakdown of talks, the Canadian Prime Minister has indicated a major strategic change, saying that Canada will now rapidly reduce its dependence on America to strengthen its economy and will turn towards new markets around the world.