CURRENT AFFAIRS

Detailed explanation-1: -Canada will slap retaliatory tariffs on $2.7 billion worth of U.S. goods, Deputy Prime Minister Chrystia Freeland said. Canada’s move came in response to President Donald Trump’s decision to reimpose 10% aluminum duties on its trade partner.

Detailed explanation-2: -On June 1, 2018, the U.S. imposed a 25 percent tariff on imports of Canadian steel and a 10 percent tariff on imports of Canadian aluminum under Section 232 of the Trade Expansion Act, which relates to perceived effect of imports on U.S. national security.

Detailed explanation-3: -Just five weeks after the United States-Mexico-Canada agreement (USMCA) went into force, the United States slapped a 10 percent national security tariff on aluminum from Canada, its closest ally.

Detailed explanation-4: -Canada and the US reached a deal last year to lift tariffs on steel and aluminium imports that had been imposed on grounds of “national security". Mr Trump reintroduced them on Thursday to protect the US industry. Friday’s retaliatory tariffs by Canada will go into effect on 16 September.

Detailed explanation-5: -Tariff Basics As a protectionist tool, a tariff increases the prices of imports. As a result, consumers would choose to buy the relatively less expensive domestic goods instead. In today’s global economy, many products bought by consumers have parts from other countries or were assembled overseas.