Trade War Escalates After Canada Imposes $20 Billion Tariffs
Canadian imports ban
The US has issued new restrictions on imports from Canada.
The restrictions apply to dairy products and motorcycles.
In addition, they apply to nearly all alcoholic products from Canada.
The restrictions will be in place in just three weeks.
Canada has levied retaliatory duties worth $20 billion.
These new restrictions were announced by Washington in response to that action.
President Donald Trump has also been going after products from Canada.
He issued new procurement regulations for the US federal government.
This could bar Canadian products from future contracts.
But Canada wants to decrease US dependency.
Prime Minister Mark Carney wants Canada to become economically independent.
Currently, over 70 percent of Canadian exports go US-bound.
Therefore, reducing US dependence remains a major challenge.
Meanwhile, Canada is expanding trade with other countries.
Carney expects those exports to grow rapidly.
He also expects exports to double within a decade.
The escalating measures could further strain bilateral trade.
Both countries remain major trading partners.
