Members of the Canadian parliament's Standing Committee on International Trade have met with representatives of Canadian business affected by the steel and aluminum tariffs imposed by the US. Heads of the steel industry, car manufacturers, car dealers and representatives of unions have endorsed Ottawa's plans to impose retaliatory tariffs against the US.
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But as Canada's CTV News reports, many of them have warned the members of the committee that without the government's support, some businesses won't survive the trade war.
"We don't really have an idea of what is probable anymore, but what is possible is actually quite frightening," Stephen Young of Janco Steel Ltd. said.
Canadian Finance Minister Bill Morneau has confirmed that the government is standing by its decision to impose retaliatory tariffs and promised to support Canadian businesses, without specifying which measures Ottawa plans to implement.
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However, some businessmen are against fueling a trade war with the US by introducing counter-tariffs, calling for reconciliation with Washington. Local RV dealership head Bob Verwey expressed his opinion in an interview with CTV that Ottawa should restore its good relations with Washington.
"You don't poke the bear […] We need to be good neighbors, we need to work with them," he said.
Flavio Volpe, head of the Canadian Automotive Parts Manufacturer's Association also warned MPs of the possible negative outcomes of a trade war with the US. He particularly pointed out that if the US decides to impose a 25% tariff on the car industry (a move that was announced by Trump on June 25 during a speech) it would lead to a disaster.
"A 25% tariff on cars and parts would cause what we like to call a 'Carmageddon'," Flavio Volpe said.
Trump has imposed harsh tariffs on steel (25%) and aluminum (10%) against many countries, including US allies in Europe, as well as Canada and Mexico. The move has been met with strong criticism, with many of the affected countries promising to counter the US move.
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Canadian Prime Minister Justin Trudeau has slammed Trump's allegation that Canadian steel is a threat to US national security as "insulting," promising that his country won't be "bullied around" by the US, promising to impose retaliatory tariffs in July.
