Canada prepares response to US' possible auto tariff imposition

Days ago, US President Donald Trump has once again threatened Canada to impose auto-tariffs if a deal is not signed between the two countries.

In a tweet, Trump, however, said the White House is going well to strike a deal with Mexico.

Trump's tweet read, "Deal with Mexico is coming along nicely. Autoworkers and farmers must be taken care of or there will be no deal. New President of Mexico has been an absolute gentleman. Canada must wait. Their Tariffs and Trade Barriers are far too high. Will tax cars if we can’t make a deal!"

Canadian Economic Development Minister Navdeep Bains said the first thing the country will try is to encourage the US to back out from its plans to impose tariff.

But if that doesn't work, Bains said Canada will conceive every option, report said.

Bains has been quoted by CTV News as saying, "We're taking nothing off the table at this stage. We're looking at every tool in our toolbox." 

Earlier, Trump had imposed imposited of 25% and 10% tariffs on imported steel and aluminium respectively from any other country.

Trump has alleged that the US faced severe losses in trade pacts with Canada and Mexico, which is the other partner of NAFTA deal.

NAFTA is an agreement which came into force from January 1994 by Canada, Mexico and United States creating a trilateral trade bloc in North America.