The Canadian government is retaliating against U.S. aluminum and steel tariffs by imposing its own penalties on American imports, according to reports.
Canada announced Sunday that the tariffs amount to $16.6 billion Canadian dollars or $12.5 billion in U.S. dollars.
What products are included?
The tariffs include 25 percent on more than 40 U.S. steel products and 10 percent on about 80 other American products. Included are “toffee, maple syrup, coffee beans and strawberry jam,” CNN reported.
The new taxes are based the amount of steel and aluminum that was shipped from Canada to the United States last year, according to reports.
Prime Minister Justin Trudeau indicated Canada is doing it to hold the U.S. accountable for its trade policies.
"I have made it very clear to the president that it is not something we relish doing but it is something that we absolutely will do," he said in June. "[As] Canadians, we're polite, we're reasonable but we also will not be pushed around."
The U.S. has also levied steel and aluminum tariffs against Mexico, China, Turkey, India, and the European Union. Key allies are angered by the tariffs, which were justified because of national security issues. Some of the countries have already retaliated and filed legal challenges with the World Trade Organizaion.
The European Union has placed additional tariffs of 25 percent on U.S. products such as motorcycles, orange juice, bourbon, peanut butter, cigarettes, and denim, reports state. Additionally, Mexico has imposed new tariffs.
What about NAFTA?
Canada and Mexico are grappling with U.S. tariffs while also attempting to renegotiate NAFTA, a major free trade agreement with the U.S. In a variety of published reports, Trump said Sunday he plans to wait until after the midterm elections to move forward with a new NAFTA deal.
Regarding NAFTA, Trump has previously said:
"I received calls from the President of Mexico and the Prime Minister of Canada asking to renegotiate NAFTA rather than terminate. I agreed.." he wrote on Twitter, "...subject to the fact that if we do not reach a fair deal for all, we will then terminate NAFTA. Relationships are good-deal very possible."
Trump has also called the North American Free Trade Agreement, the "worst trade deal in the history of the world."