OTTAWA (Reuters) – Canada struck back at the Trump administration on Friday over US steel and aluminum tariffs, vowing to impose punitive measures on C$16.6 billion ($12.63 billion) worth of American goods until Washington relents.
The retaliation came as Treasury Secretary Steve Mnuchin denied a report that President Donald Trump wanted to withdraw from the World Trade Organization.
Rising trade tension between Canada and the United States and a pushback from US businesses on further tariffs, including on imported autos, pressured a White House that has championed an “America First” protectionist stance since Mr Trump took office in January 2017.
Mr Mnuchin lashed out against a report by the Axios news website that said Mr Trump frequently told advisers he wanted the United States to quit the WTO, a move that could devastate global commerce. The report cited people involved in discussions with the president.
“This is an exaggeration,” Mr Mnuchin said. “The president has been clear … he has concerns about the WTO, he thinks there’s aspects of it that are not fair, he thinks that China and others have used it to their own advantage, but we are focused on free trade. That’s what we’re focused on – breaking down barriers.”
Canada’s retaliatory tariffs, effective on July 1, largely target US steel and aluminum products, along with foodstuffs such as coffee, ketchup and whisky, according to a list released by Canada’s Finance Department.
“We will not escalate and we will not back down,” Canadian Foreign Minister Chrystia Freeland told reporters at a Stelco Holdings Inc plant in the steel city of Hamilton, Ontario.
