An Angry Canada Responds To Trump’s Lumber Tariff… And What It Means For The Economy

Tuesday, April 25, 2017
By Paul Martin

by Tyler Durden
ZeroHedge.com
Apr 25, 2017

After last night’s announcement of ~20% tariffs on softwood lumber imported from Canada, Prime Minister Justin Trudeau lashed out at the Trump administration saying the U.S. could suffer from a “thickening” border as trade tensions between the two countries escalated, sending the Canadian currency to a 14 month low.

As a reminder, the United States announced it would impose preliminary anti-subsidy duties averaging 20 percent on imports of Canadian softwood lumber, Commerce Secretary Wilbur Ross said on Monday, escalating a long-running trade dispute between the two neighbors. The move, which affects some $5.66 billion worth of imports of the construction material, sets a tense tone as the two countries and Mexico prepare to renegotiate the 23-year-old North American Free Trade Agreement.

Speaking to a technology company in Ontario, Trudeau said he would defend the national interest: “standing up for Canada’s interests is what my job is, whether it’s softwood or software,” Trudeau said, prompting applause and cheers.

“You cannot thicken this border without hurting people on both sides of it. Any two countries are going to have issues that will be irritants to the relationship and, quite frankly, having a good constructive working relationship allows us to work through those irritants.”

Elsewhere, Canada’s Natural Resources Minister Jim Carr said the U.S. move to set tariffs on softwood lumber shipments are an “unfair and unwarranted trade action.” Speaking to reproters in Ottawa, Carr said that Canada is looking at an aid package for lumber industry and workers which could up to $300 million, and added that a court challenge of duties is possible, and that Canada has won all of those cases in the past.

Carr also said free trade is in the best interest of both nations: “There are irritants in the trading relationship, they aren’t new.”

Canada’s Liberal Party leader says the two countries are economically interconnected, but it’s not a one-way relationship. He said that millions of U.S. jobs depend on smooth flow of goods, services and people back and forth across the border. The Prime Minister also vowed to stand up for Canadian interests after Trump’s decision sent the Canadian dollar to a 14-month low.

The Rest…HERE

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