Canada's duties force shoppers to smuggle, Trump wrongly accuses

One of Trump's major concerns was Canadians, who he claims are traveling to the United States to avoid tariffs while shopping. "The tariffs to get common items back into Canada are so high that they have to smuggle them in", he said in a speech Monday.

Trump has angered Canada with his protectionist rhetoric, and has threatened to scrap the North American Free Trade Agreement (NAFTA) in favor of a new bilateral trade deal. 'They scuff them up.

Trump said he's looking out for American farmers and manufacturers, as he again took issue with Canada's supply management system for dairy farmers.

U.S. President Donald Trump launched another trade tirade against Canadians, accusing them Tuesday of sneaking their American shopping back home - all because of what he calls "massive" tariffs on American goods. "They make them sound old or look old", the president said.

But it is the investigation launched by the Department of Commerce - using the same national security clause - into whether tariffs should be slapped on cars and light trucks entering the US that sparked major concern Tuesday for Conservative and New Democrat MPs.

The president has waged a war of words against Canada and Prime Minister Justin Trudeau ever since the Canadian leader criticized Trump's decision to increase tariffs on steel and aluminium, saying it would hurt the economy of both countries. She said Canada, Mexico and the USA will continue negotiating NAFTA through the summer and that she is convinced there is "goodwill" moving forward. Canadians are eligible for duty-free exemptions only if they have been out of Canada for at least 24 hours.

"Tariff imposition of this nature would be devastating for the auto industry in Ontario", O'Toole said.

The comments came as Trump tries to justify an escalating trade battle with Canada over new steel and aluminum tariffs from the Trump administration. "And I think we all agree that it is important for Canada to stand up in defence of the worldwide rules-based order, and we will do so". And it has launched an investigation into whether tariffs should be slapped on cars and light trucks entering the US using the same national security clause. "We want to be the smart country" Trump said.

Canada is still preparing dollar-for-dollar retaliation on $16.1-billion of USA goods to take effect on July 1.

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