Canada is in the middle of a trade war with the US — so says Evan Solomon, AM800's National Affairs Specialist.
Solomon says the nearly 220% duty slapped on Montreal aerospace giant Bombardier C-Series planes is a signal the US is ready to fight Canada on trade.
"That is the United States government openly declaring, 'Hey, Canada — this is a trade war. We are ready to hit you hard. We are ready to put your biggest companies out of business," says Solomon.
The duty proposed by the US Commerce Department is in response to a complaint by rival Boeing that Bombardier's $6-billion sale to Delta was subsidized by the Canadian government.
As heard on The Afternoon News, Solomon says the duty is a message being sent to Canada as part of NAFTA re-negotiations.
"Wait 'til we get to the auto sector because the United States is trying to absolutely stomp on the Canadian auto sector in terms of rules of origin, which means the parts that are made in the United States and what has to be in a car, that's a huge deal — we don't know the answer to that."
New York, USA- January 28, 2012: Bombardier CRJ-701 Delta Air Lines takes off from John F. Kennedy International Airport in New York, NY on January 28, 2012. Delta is the oldest airline still operating in the United States. (Photo courtesy iStock/rypson)
According to Solomon — the war has just begun.
"Do you think the United States is afraid now to do the same kind of thing on auto? They will smack duties on that no one has ever seen — 220% duty? That's like out to the moon, that's not, 'Oh, this is a small penalty,'" says Solomon.
Solomon says US President Donald Trump is taking a shot at Canada to make up for a lack of domestic accomplishments.
"Can't get a win anywhere else, so he looks up north at Great White Pinata and he's taking a smack at it and he just hit our airline industry and he may well hit our auto industry as well," says Solomon. "If you're in Windsor right now, you've got to pay attention to this day."
The US International Trade Commission will now look at the proposed duty and determine if Boeing's claim is legitimate — otherwise, the duty could be cancelled.
The latest round of NAFTA talks were held in Canada and wrapped on Wednesday.