Aug. 2, 2018

Canada’s government planned to diminish its carbon tax to enhance the competitiveness of the firms with America. The policy was made by Canada Prime Minister, Justin Trudeau, in 2015, to tackle the issue of climate change. The companies in Canada criticized the initial carbon tax for depressing the competition since there is no carbon tax in the U.S.A.

With the pressure from the strategy of increasing the imposed tariffs on steel and aluminum by the U.S. President, Donald Trump, the Canada government cut down the tax to 20 % on most of the industry. As for the vulnerable sectors such as steel and aluminum, the tax was cut to 10 %.

Caroline Theriault, the spokesperson for Canada’s Environment Minister Catherine McKenna, pointed out that the change of the carbon tax would strengthen the competitiveness of the enterprises while keeping the reduction of carbon emission.