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.
In 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.
Trump's executive order also directed the secretaries of Commerce and Treasury and the United States Trade Representative to investigate the causes of behind America바카라s trade deficits with foreign nations, to determine how to build an 바카라External Revenue Service바카라 to collect tariffs duties and revenues and that would lead to 바카라massive amounts of money pouring into our country coming from foreign sources.바카라
How did Canada react?
Reacting 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 바카라will continue to work on preventing tariffs바카라 but said they are also 바카라working on retaliation.바카라
Anticipating unpredictability from Trump, Canadian Finance Minister Dominic LeBlanc said, 바카라None of this should be surprising. Our country is absolutely ready to respond to any one of these scenarios.바카라
바카라It 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,바카라 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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바카라If they decide to take a close look at the US Canadian relationship when it comes to trade that's a very good thing,바카라 LeBlanc said at a Cabinet retreat in Montebello, Quebec. 바카라Both countries are stronger and more secure when we respect and honour the comprehensive free trade agreement.바카라
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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