Trump slaps retaliatory tariffs on dozens of countries but Canada is spared the worst this time
The President of the United States Donald Trump announced on Wednesday his long-awaited plan to impose what is calling “retaliation” rates on imports from dozens of countries-but the White House said that there will be no more withdrawals throughout Canada than it had been previously announced.
Trump said, however, that he is going on with a 25 % rate on “All Foreign” cars at midnight on Wednesday, who could have serious implications for the Canadian automotive sector.
The White House said that the tariff rate will apply to Canadian manufacturing passenger vehicles, but there is a warning-carrier only on the value of All non -US content In that car.
Trump also said that he would apply “a minimum basic rate of 10 %” on all the assets that enter the United States, with higher rates than those for some countries that the president said that presumably was more striking in tearing the Americans.
In a information sheet widespread to journalists after Trump’s announcement, the White House said that Canada will not be subjected to that additional basic tariff rate due to the rates related to the previously announced borders Instead it will continue to apply.
Trump slapped a 25 % rate on Canadian assets (and 10 % on energy) last month, presumably in response to drugs and migrants who entered the United States through the northern border, but have made some exceptions for importers who can demonstrate the products they are bringing from Canada are compliant with the US-Mexic (USMCA) agreement.
The liberal leader Mark Carney, who paused his election campaign on Wednesday to meet Ottawa with his cabinet to develop an answer, said that Trump’s announcement “substantially changed the international commercial system”.
Carney said that Trump has preserved some aspects of the “commercial report” of Canada-USA by retaining the deployment of the full force of mutual rates on this country. But he said that the rates that they will now have an effect on cars are a particular concern and warned that there may be much more for other sectors.
Carney said that the White House has reported to Canada that there could be more US rates at a later time in other “strategic sectors” such as pharmaceutical products, timber and semiconductors.
“The series of measures will directly influence millions of Canadians,” Cariy said to journalists while going to the cabinet on Wednesday.
“We will fight these rates with countermeasures. We will protect our workers and build the strongest economy of the G7. In a crisis it is important to meet and it is essential to act for the purpose and with the strength, and that’s what we will do,” he said.
Prime Minister Mark Carney, speaking from Parliament Hill on Wednesday, says that Canada will act with “purpose and strength” to fight the new US tariffs. President Donald Trump slapped new 25 % rates on foreign manufacture cars, but Canada has been spared the basic rates of 10 % applied to many other countries.
A 3 -pointed approach
Trump is pursuing an approach on three fronts at rates while trying to radically remodel the American economy.
There are the “mutual” rates that Trump has imposed on Wednesday to a whole series of other countries except Canada and Mexico.
Then there are so -called “section 232” rates that have already been collected on Canadian steel and aluminum and, starting from midnight, will also be slapped on cars.
Those rates take their name from the section of an American commercial law that allows the president to impose withdrawals on certain goods that are said to threaten “national security”.
And thirdly, there are the rates related to borders to punish Canada for what the president has described as an “emergency” drug crisis fueled by the Fenanil that comes from the North.
The White House said on Wednesday if the “emergency” commercial order of drugs and migrants is canceled at a certain point, the rate on goods that do not respect the USMCA will drop from 25 % to 12 %.
However, Trump chose Canada for criticism when he announced the latest tariff regime, repeating his falsity often cited that the United States somehow “subsidize” this country of $ 200 billion per year. The commercial deficit of the United States with Canada – which is largely guided by low -cost oil imports – is much smaller than that.
“You have to work for you,” said Canada Trump. “We simmer many countries, make them go and keep them in business”.
“Our country has been plundered, sacked, raped, plundered by the nations near and far, both a friend and enemy,” said Trump. “They snatch us, it’s so pathetic. Now we’ll load.”
Increase feared sharp prices
Trump said that rates have the purpose of “enhancing our national industrial base” and forcing companies to create more products in the United States, but also risk causing a brutal economic slowdown since consumers and companies will soon face strong increases in prices following the new taxes.
It is the last limited side of Trump against Canada, its one -off allean and the free trade partner.
In about 10 weeks he was president, Trump had a fury against Canada, collecting rates for presumably Spring action on drugs and migrants on the border, imposing steep rates on Canadian steel and aluminumBy spreading disinformation on the dairy sector, threatening the sovereignty of the country with almost daily insults “51st state” and repeatedly saying the Americans do not need Canada despite the commercial data that show that it is clearly false.
Those persistent attacks and insults have damaged bilateral relationships. Some Canadians are boycott American goods, pulling travel plans in the United States en masse and whistling the American national anthem in sporting events, actions that were thought unthinkable only a few months ago.
How to manage Trump, its rates and acquisition threats have also become the central question of the next federal election campaign.
