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OTTAWA – With threats of devastating U.S. tariffs hanging over the auto sector, Canada’s financial growth minister says Ottawa is contemplating each doable approach it might reply if the Trump administration follows by way of on its warning.
Navdeep Bains mentioned Plan A is to proceed encouraging the U.S. to again away from the tariff menace, which trade has warned would inflict important injury on each international locations’ economies.
READ MORE: U.S. President Trump threatens auto tariffs towards Canada if commerce talks fail
But simply in case they’re utilized, Bains mentioned Ottawa is contemplating “every conceivable option.”
“We’re taking nothing off the table at this stage,” Bains mentioned in an interview. “We’re looking at every tool in our toolbox.”
Bains declined to share specifics when requested about potential trade help in Canada or retaliatory actions towards the U.S., nonetheless, he famous how Ottawa took a number of steps to answer American metal and aluminum duties.
Earlier this summer time, Ottawa utilized retaliatory tariffs on $16.6-billion value of U.S. imports of metal, aluminum and different merchandise. It additionally introduced a monetary assist package deal for industries caught within the crossfire, together with as much as $2 billion in new funding and help for employees in metal, aluminum and manufacturing sectors.
Levies, nonetheless, on the vital auto trade would have far larger impacts on Canada’s financial system – and would seemingly name for a far higher response.
“I don’t want to get into the speculation game, all I can assure you is that we will continue to support the workers and we will continue to support the industry as we’ve done so in the past,” mentioned Bains, who added that the federal government first must genuinely perceive what the tariffs would appear to be and the way they’re utilized.
READ MORE: ‘Canada must wait’ on commerce deal, however Mexican one is coming properly, Trump says
“We take nothing for granted, we’re doing our due diligence, we’re doing our homework.”
U.S. President Donald Trump has made repeated threats – together with one late final week – that he would slap Canada with auto tariffs. In a tweet that appeared to reference NAFTA’s ongoing renegotiation, Trump wrote that the “deal with Mexico is coming along nicely” and that “Canada must wait.”
Trump then despatched a warning to Ottawa: “Their Tariffs and Trade Barriers are far too high. Will tax cars if we can’t make a deal!”
Ottawa has been on the NAFTA sidelines for a fourth straight week whereas it awaits the completion of one-on-one talks on the deal between the U.S. and Mexico.
Bains mentioned Canada has been presenting its case to the U.S. administration, state governors and different American lawmakers in regards to the adverse penalties of the tariffs on the extremely built-in auto trade for each international locations.
Last month, Canada’s deputy ambassador to Washington, Kirsten Hillman, delivered a message throughout testimony at U.S. Commerce Department hearings that Ottawa would retaliate with auto tariffs of its personal.
The Commerce Department is investigating whether or not the duties ought to be utilized based mostly on the premise that auto imports from Canada pose a nationwide safety threat to the U.S., an thought Ottawa has rejected.
READ MORE: Canadian exports hit file excessive in June however U.S. tariffs on metals slashed metal, aluminum shipments
To assist work out Canada’s potential responses, Bains mentioned he’s spent a lot of his summer time listening to the auto trade. The course of included a convention name Wednesday with the Canadian Automotive Partnership Council, which has a membership that features CEOs of the nation’s 5 auto assemblers and of its main elements suppliers in addition to representatives from labour unions, academia, seller associations and trade ministers from Ontario and Quebec.
Council member Jerry Dias, president the nation’s largest private-sector union, mentioned the federal authorities has been signalling it might do one thing “meaningful immediately to shore up the companies” in response to U.S. auto tariffs.
Dias expects a federal package deal to incorporate many elements, resembling incentives, work-sharing applications and assured loans.
“People are nervous,” he mentioned, including it might be “incredibly problematic” if Trump moved forward with the tariffs. Dias, nonetheless, isn’t satisfied Trump will comply with by way of due to how a lot injury the levies would trigger to the highly effective U.S. auto sector.
Political opponents say Ottawa must do a greater job of serving to individuals and companies affected by U.S. tariffs already in place.
Tracey Ramsey, an NDP MP from Windsor, Ont., says she’s heard from many individuals who’ve had a tricky time navigating authorities companies as they seek for key data, resembling making use of for tariff exemptions and for help below the $2 billion value of help promised by Ottawa.
Earlier this week, the opposition New Democrats referred to as on the Liberals to create a nationwide activity power on tariffs that may streamline the method by making a single authorities portal.
Note: « Previously Published on: 2018-08-16 10:35:01, as ‘Ottawa making ready response if Donald Trump follows by way of with U.S. auto tariffs menace – National’ on GLOBALNEWS CANADA. Here is a supply hyperlink for the Article’s Image(s) and Content ».