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August 2, 2018

Canada's retaliatory tariffs could impact cross-border shopping

Cross-border shopping between northern Maine and Canada is expected to be hurt by a retaliatory “grocery tariff” established by the Canadian government.

The Quoddy Tides reported that the Canadian tariff, which went into effect July 1 in response to the United States’ 25% steel tariff and 10% aluminum tariff, has already had an impact.

“Word around town is that people are not wanting to go to the states to purchase much of anything,” Rob Patry, a St. Stephen, New Brunswick, resident and journalist, told the Quoddy Tides.

The Canadian broadcaster CTV News reported the Canadian tariffs are valued at $16.6 billion.

In a news release, the Retail Council of Canada, in Toronto, Ontario, said the list of retail goods “raises concern that retailers and consumers could bear a disproportionate burden of the Canadian response.”

In its announcement of the retaliatory tariffs, the Canada Department of Finance said the countermeasures will remain in place until the United States eliminates trade-restrictive measures against Canadian steel and aluminum products. Tariffs were placed on certain grocery items, personal care items and household and garden goods.

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