Sunday, July 1, 2018

Canada takes aim at Red States




In response to President Donald Trump’s tariffs on Canadian steel and aluminum, Prime Minister Justin Trudeau’s government is imposing tariffs on 235 U.S. products.

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Canada’s list of tariffs has been designed to damage American businesses in politically important and Republican-leaning parts of the country, theoretically creating pressure on Trump to drop his own tariffs.

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It is far from clear that anyone will budge.

Trump has so far been willing to ignore the pleas of foreign leaders, business titans and congressional Republicans on trade. And even anti-tariff elected Republicans have largely been deferential, wary of opposing a president popular with party voters.

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Canada’s retaliation list includes whiskey, a famous export of Republican Senate Majority Leader Mitch McConnell’s Kentucky, and frozen pizza, produced by several companies in House Speaker Paul Ryan’s Wisconsin.

And it includes toilet paper. Mehoopany, Pa., a tiny community represented by Republican congressman and Senate candidate Lou Barletta, is home to a massive Procter & Gamble plant that makes Charmin toilet paper.

Pennsylvania, a state key to Trump’s victory, is also targeted by the tariffs on chocolate and licorice, both made by the Hershey Co.

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Trudeau’s tariffs will not only be hitting corporate giants. The tariffs on “prepared meals, of bovine” — convenience items like ready-to-eat beef sandwiches — will hit small companies specializing in these items, said Joe Schuele, spokesperson for the U.S. Meat Export Federation.

Schuele said $164 million of last year’s $800 million in U.S. beef exports to Canada will be affected by the tariffs. “There may be a tendency to look at it from an industry-wide impact, which may seem modest, but its impact on a certain segment of the U.S. beef industry will be quite significant,” he said.

  The Star

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