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<\/a><\/p>\nCanadian Prime Minister Mark Carney\u2019s pledge to match dollar-for-dollar the 50% tariff on some Canadian goods took effect Monday, applying to such items as clothing, metal parts and wood products, mimicking Trump\u2019s actions.<\/p>\n
The U.S. announced it would ban imports of many Canadian dairy and alcohol products starting Sept. 29. Imports of Canadian whey products and molasses, non-alcoholic beer, and alcoholic drinks including malt beer, wines, cider, whiskies, vodka, and other spirits will be banned, reported\u00a0CNBC<\/a>.<\/p>\n Carney said in a video address that Canada had to retaliate to protect its companies and jobs.<\/p>\n Tariffs Could Reshape Dairy Trade<\/p>\n Trade negotiations between the U.S. and Canada collapsed Aug. 21 over a variety of demands that Carney said would have undermined some of his country\u2019s most basic industries, including autos, steel and forest products, and made Canada more reliant on the U.S.<\/p>\n The U.S. imported $382 billion in Canadian goods last year while Canada imported $333 billion in U.S. goods.<\/p>\n The $20 billion in new levies, which affect about 6% of Canada\u2019s U.S. imports, hit U.S. dairy hardest: 50% tariffs on milk and cream, powders, whey and milk-protein concentrates, 25% on cheese and fresh curd, plus 50% on honey, molasses and baker\u2019s mixes. The result could be excess U.S. supply, forcing prices lower while boosting Canadian production.<\/p>\n In addition to dairy, the tariffs include steel and aluminum, appliances, agricultural equipment, plastics and electronics.<\/p>\n Levies Could Send Food Prices Higher <\/p>\n \u201cThere is significant trade in a large variety of food and beverages between the United States and Canada,\u201d noted David Lennarz, president of Registrar Corp. \u201cTariffs instituted by the United States, and those instituted by Canada today, will have a significant impact on the volume and prices of these products.<\/p>\n \u201cUltimately, consumers will find less choice and pay higher prices.\u201d<\/p>\n Canadian importers will move quickly to mitigate the higher costs and lower volumes of shipments from the U.S. by sourcing from other countries, Lennarz said.<\/p>\n \u201cPricing will be volatile and unstable until more normal trade resumes,\u201d the industry expert said.<\/p>\n \u201cWhile many products from the U.S. don\u2019t have substitutes from other origins (think premium U.S. made liquor), some do and will help fill the gaps,\u201d Lennarz added.<\/p>\n A number of surveys already have indicated consumers are cutting back because of high prices, and a report released by GreyOrange found bare shelves will complicate the situation even further.<\/p>\n