ꦺPresident Donald Trump on Monday said that he could put 25 percent trade tariffs on Canada and Mexico starting on February. The Canadians were initially relieved over the fact that broad tariffs were not applied to their products on the first day of Trump's presidency. However, the relief didn't last long.
US: President Trump Imposes 25% Tariff On Canada From Feb 1; 'Working On Retaliation', Says Canadian Minister
♕US President Trump pledged in his inaugural address that tariffs would be imposed and said foreign countries would be paying the trade penalties, even though those taxes are currently paid by domestic importers and often passed along to consumers.
For products from China, Trump announced a levy of 60 percent levy, as per CNN.
🃏Trump's decision has been in line with the recent episode of threatening to impose sweeping tariffs on Canada, Mexico and other trading partners.
ꦍIn his inaugural address, Trump pledged that tariffs would be imposed and said foreign countries would be paying the trade penalties, even though those taxes are currently paid by domestic importers and often passed along to consumers.
⭕"We're thinking in terms of 25% on Mexico and Canada. I think February 1st", Trump said late Monday night in the Oval Office.
𝐆Trump's executive order also directed the secretaries of Commerce and Treasury and the United States Trade Representative to investigate the causes of behind America’s trade deficits with foreign nations, to determine how to build an “External Revenue Service” to collect tariffs duties and revenues and that would lead to “massive amounts of money pouring into our country coming from foreign sources.”
How did Canada react?
𒈔Reacting to Trump's decision of imposing a hefty tariff, top Canadian ministers said that Canada will be ready to retaliate. Canadian Foreign Minister Mélanie Joly said they “will continue to work on preventing tariffs” but said they are also “working on retaliation.”
𒐪Anticipating unpredictability from Trump, Canadian Finance Minister Dominic LeBlanc said, “None of this should be surprising. Our country is absolutely ready to respond to any one of these scenarios.”
“It would be a mistake for the American government to proceed with imposing tariffs, in terms of the cost living in the United States, in terms of jobs in the United States and the security of supply chains,” LeBlanc further added, according to the Associated Press.
US-Canada trade relation
♛Despite Trump's claim that the US doesn't need Canada, a quarter of the oil America consumes per day is from there.
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ꦓ“If they decide to take a close look at the US Canadian relationship when it comes to trade that's a very good thing,” LeBlanc said at a Cabinet retreat in Montebello, Quebec. “Both countries are stronger and more secure when we respect and honour the comprehensive free trade agreement.”
🌞Canada is one of the most trade-dependent countries in the world, and 75% of Canada's exports, which include automobiles and parts, go to the US. Canada is the top export destination for 36 US states.
Nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border each day, says the Associated Press.
(With AP inputs)
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