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US Canada Trade War News In Hindi: Taking a major step, US President Donald Trump has announced the imposition of 50 percent import tariff on most goods coming from Canada.

The Trump administration took this tough decision on Monday because of Canada’s alleged discriminatory treatment of American automobiles, liquor and dairy products. Has been cited as the main reason. This decision has created an environment of uncertainty not only in North America, but also in the global financial markets.

These products will be punished

According to information released by the White House, this new tariff order will be effective from August 19. Trump has signed three special executive orders under Section 338 of the Trade Act of 1930. However, the US has kept strategically important energy products, potash, fish and essential minerals out of this hefty duty.

This step is also significant because it also includes goods that were previously not covered under the ‘United States-Mexico-Canada Agreement’ Was tax exempted under (USMCA). America has not renewed this trade agreement of 2020, due to which now a long period of negotiations may extend till 2036.

Canada warned of retaliatory action

There is a sharp reaction in Canada to this decision of Donald Trump. Ontario Premier Doug Ford has taken a tough stance, saying that if these tariffs go into effect, Canada will be forced to trade ‘dollar for dollar’ and ‘tariff for tariff’ Will have to work on the principle of.

At the same time, the Canadian Chamber of Commerce called this move ‘regretful’ Stating that both the countries have been advised to hold meaningful talks within the next 30 days so that economic losses can be avoided. Experts believe that if the talks are not successful, it could lead to a full-blown ‘trade war’ Can take the form of.

increasing risk of economic recession

This decision of Trump has come at a time when oil prices are already at high levels in the international market due to the ongoing military conflict with Iran and tension in Hormuz. Economic experts argue that the direct burden of increase in import duty will fall on consumers, which may lead to further increase in inflation rate in America and globally.

Just in February this year, the US Supreme Court had ruled that the President does not have the direct legal authority to impose tariffs by declaring an economic emergency, after which the Trump administration has used other legal avenues like Section 338.

diplomatic challenges

Interestingly, this announcement came when Trump recently watched the World Cup final match with Canadian Prime Minister Mark Carney. However, officials clarified that it was not an official meeting. This decision can also prove to be a big political challenge for Trump before the mid-term elections to be held in November, because last year also a similar ‘Liberation Day’ was held. There was a huge decline in the stock market due to the tariffs.