Washington:
President Donald Trump announced on Friday that he is considering imposing reciprocal tariffs on Canadian dairy and lumber in the coming days, escalating tensions with Ottawa following a recent round of tariffs. Since assuming office, Trump has implemented a series of tariffs and threats against both allies and adversaries, including duties of up to 25 percent on imports from Canada and Mexico.
While he temporarily exempted goods from these countries under a North American trade pact on Thursday, Trump has promised broader “reciprocal tariffs” starting April 2 to address what the US deems as unfair practices. The President indicated that these levies could be implemented as soon as today, targeting sectors like lumber and dairy products that have been at the center of trade disputes between the two neighbors for years.
Economists warn that blanket tariffs could negatively impact US growth, raise inflation, and dampen business and consumer sentiment. Despite this, Trump continues to put pressure on Canada, criticizing their treatment of American farmers and labeling their trade practices as unfair.
In an interview with Fox Business, Trump hinted at the possibility of increasing tariffs on Canada and Mexico in the future, indicating that the situation could evolve over time. White House senior counselor Peter Navarro dismissed claims of uncertainty surrounding Trump’s trade policies, attributing it to a lack of trust in the President’s statements.
The decision to exempt certain goods under the United States-Mexico-Canada Agreement (USMCA) came after stock markets reacted negatively to the initial tariffs imposed by Trump earlier in the week. A White House official revealed that despite the adjustments, a significant percentage of Canadian imports will still be subject to the new levies, with energy resources facing a lower 10 percent rate.
For Mexico, around 50 percent of imports will be affected by the tariffs. These developments mark a continuation of the ongoing trade tensions between the US and its North American neighbors, with the potential for further escalation in the near future.
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