Note: Single-source report; awaiting corroboration.
The U.S. government has accused Canada of discriminatory trade practices negatively impacting American workers, farmers, and businesses. The allegations include a 25% tariff and company-specific quotas on U.S. motor vehicles—penalties not imposed on any other country—which have led to a 22% decline in vehicle exports to Canada over one year. Additionally, Canada has banned American wine, beer, and spirits in most provinces and territories, causing an 81% drop in U.S. alcohol exports. U.S. dairy exports face tariff-rate quotas more restrictive than those for Europe, with tariffs nearing 300%, effectively amounting to a near-total ban. The U.S. also claims that protectionist measures have hurt aerospace manufacturers like Gulfstream. According to the U.S., these policies have caused billions in lost sales and layoffs for American producers while benefiting foreign competitors that are not subject to similar restrictions.
The report adds that Canada relies heavily on exports to the U.S., with three-quarters of its goods shipped south, yet it maintains trade barriers that contribute to a persistent U.S. trade deficit averaging $50 billion annually. It states that 42% of Canadian manufacturers have moved or plan to move production to the U.S. Recently, Canada imposed an additional $27.6 billion in tariffs on American products, including a 50% tariff on steel and aluminum and 25% tariffs on fish and tools. According to the U.S., these actions follow failed negotiations and are considered retaliatory and coercive. The statement concludes that the U.S. is taking steps to end what it calls Canada’s free ride in trade relations.