Canada to drop many of its reprisals in the United States

Prime Minister of Canada Mark Carney said on Friday that his country would decrease some of his billions of dollars in reprisals from American products, although he will keep samples from cars, steel and aluminum.

It comes one day after he and President Donald Trump spoke on the phone for the first time since the two countries missed a self-imposed deadline to achieve a trade agreement.

Canada had placed a 25% levy out of approximately $ 30 billion (16 billion pounds sterling; $ 21.7 billion) of American products on a range of products, including orange juices and washing machines.

The increase in taxes was in retaliation for American prices in Canada, which in August is valued at 35% on all goods which do not comply with the existing free trade agreement in countries.

Carney said Canada will now correspond to the United States by ending its prices on goods in accordance with the American-mexico-canal (USMCA) free trade agreement. He said that “would restore free trade for the vast majority” of the goods that move between the two countries.

The decision will come into force on September 1, said Carney.

In a statement to the BBC news partner, CBS, the White House said that it is hosting Canada’s decision, adding that it was “expected for a long time” and that the United States is looking forward to continuing discussions with its northern neighbor on trade and national security.

Canada is one of the many tariff countries by the United States as part of Trump’s global commercial strategy, but it is one of the only two countries – as well as China – that have placed reprisals on American products in response.

The survey shows that the majority of Canadians support reprisal rates in the United States.

Carney, who was elected to the April general elections, campaigned on an aggressive approach to “elbows” to negotiate with Trump, referring to a popular ice hockey term.

Questioned by journalists as to whether Canada softened its approach, Carney argued that it had a better pricing agreement with the United States than many other countries due to the sculpture of free trade.

This puts the real rate rate on Canadian products at around 5.6%, much lower than the average of around 16% for other countries, he said.

“While we are working to solve exceptional trade problems with the United States, it is important that we do our best to preserve this unique advantage for Canadian workers and businesses,” he said.

Canada said Carney, will now be on the acceleration of negotiations, steel, aluminum and wood and other important sectors before a planned examination of the USMCA free trade agreement next year.

The United States has placed a 50% rate on all imports of steel and aluminum, with the exception of those of the United Kingdom, as well as imports of copper. He also imposed 25% on aluminum imports.

Canada, for its part, has placed 25% of prices on American steel, aluminum and cars. They will remain in place for the moment, said Carney.

Since his return to the White House in January, Trump has launched a world trade war, imposing prices or raising them on goods from around the world and threatening to go higher while working to negotiate trade agreements which he considers favorable in the United States.