Unlock the White House viewing newsletter for free
Your Guide to what Trump’s second term for Washington, Business and the world means
Donald Trump has said the United States will impose a 35 percent tariff on Canada in early August, as it launches fresh salon against one of the country’s largest trading partners.
The US President sent a letter to Canada Late Thursday, after an interview in which Trump warned EU nations to expect a tariff announcement aimed at the “Today or Tomorrow” bloc. He said countries that did not receive a letter from him would face tariffs of 15-20 percent.
“We just say that all the remaining countries will pay, whether it’s 20 % or 15 %. We are working now,” Trump said NBC News. Trump’s “reciprocal” tariffs are currently set to 10 %.
An administration official said the Canadian tariffs would “probably” be canceled from the terms of Trump’s trade agreement in 2020 with Canada and Mexico, but said “no final decisions were made”. Such release can significantly reduce the damage to the higher tariff.
Interventions marked the latest turn in the turbulent week in which Trump escalated his Global Trade War, threatening tariffs for more than 20 countries, along with the upcoming 50 % taxes on copper.
The president cited the lack of a major, unfavorable reaction to the market in the final round of tariffs after US capital closed to record highs on Thursday. “I think the tariffs were very well received. The stock market today reached a new high level,” Trump told Ann -Bi.
The Canadian dollar slipped by 0.6 % compared to its US counterpart after the announcement, before the losses were reduced to trade 0.3 %. The future of the US stock index has declined, with those following the S&P 500 blue chips to 0.4 %, while the futures follows the Canadian benchmark index of 0.4 %.
Steep tariffs for Canada would have broad economic consequences. Trade between the two countries reached more than $ 760 billion last year, according to US customs data. Many businesses in North America have many integrated chains of finished products, such as cars, often crossing the border.
Trump has given countries to achieve tariff deals by August 1. He initially set a deadline of July 9 to reach an agreement on the “Liberation Day” tariffs in April.
Along with Mexico, Canada was one of the first countries to hit Trump with tariffs after finishing in January. He accused the US closest neighbors of failing to control illegal migration and trade in opioid fentanyl.
Canada had close to trading without tariffs for many goods and a 25 percent tariff for all products that are not in line with the US-Mexico-Canada deal. Canadian oil and energy products face a lower 10 %tariff.
The northern neighbor of the United States also benefits from the carved 25 % tariffs for car parts, but it is hit by a total 50 percent tariff for all steel and aluminum products.
Trump’s move holds pressure on Canadian Prime Minister Mark Carney, who wins federal elections in April promised to oppose the US president And use your experience as a governor of the Central Bank to manage its country through economic turmoil that has released tariffs.
Trump’s letter returns to his complaints about the “Fentanyl Flow” across the US-Canadian border, as well as Canadian US dairy treatment.
Carney this month dropped tax on digital services It has attracted Trump’s anger to target US tech companies, as the prime minister has tried to equalize trade tensions – causing criticism from opponents.
“Carney gave up the look to oppose Trump some time ago,” said Dan Noulan, who was an adviser to former conservative Prime Minister Steven Harper.
A spokesman for Carnie declined to comment.
Additional notice from William Sandlund in Hong Kong
Source link
