US, Canada trade war?

Canada’s Foreign Minister Chrystia Freeland has declared that her country will "not back down" in the face of new tariffs imposed by the United States on steel and aluminium.

Freeland’s tough talk came as the Canadian government unveiled a $2 billion package to support the country's steel and aluminium industries.

Last month, the US imposed 25 per cent tax on steel and a ten per cent tax on aluminium imported from the European Union, Mexico and Canada.

Canada has set to counter with retaliatory tariffs on $16.6 billion worth of US products, which are set to come into effect tomorrow.

Canadian officials say the tariffs will target US steel and aluminium products as well as items such as yoghurt, ketchup and orange juice, which are made in key political battlegrounds states such as Wisconsin, Pennsylvania and Florida.

Freeland said US tariffs left Canada "no choice" but to respond.

The said the list of products chosen by her government is intended to match, "dollar for dollar", the US tariffs, which came into effect on 1 June.

"Our approach is we will not escalate, but equally we will not back down," Freeland insisted.

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