Tariffs: Trump set to announce new tariffs on dozens of countries. Canada in the firing line
Washington has announced 50 per cent tariffs on Canadian goods worth 20 billion dollars. Wine, cement and ice hockey sticks are among the items affected.
Key points
US President Donald Trump is reportedly set to announce as early as this week a new wave of tariffs against dozens of countries. This is according to the Financial Times, ahead of the expiry of the temporary 10 per cent global tariff. According to the British newspaper, the new measures are expected to involve, at least initially, tariffs at the same level as those currently in force, namely 10 per cent. According to the Financial Times, the US administration is also conducting further investigations that could provide it with the legal basis to impose even higher tariffs on a number of trading partners in the future.
Meanwhile, the president Donald Trump has imposed an additional 50 per cent tariff on certain products from Canada, including wine, ice hockey sticks and cement. The White House has stated that the tariffs are a response to Canada’s ‘discriminatory treatment of US products’. Certain sectors and products, including energy, potash, fish and critical minerals, are exempt from the new tariffs. The tariffs will come into force 30 days after signing and will affect approximately $20 billion worth of Canadian goods. According to the White House, the tariffs are intended to offset the burdens and disadvantages arising from what has been described as Canada’s discrimination against US products, including cars.
The dispute with Canada
The announcement marks the latest point of friction in an already strained relationship between the United States and Canada.
“Canada has put forward a series of detailed and comprehensive proposals to resolve the dispute and modernise the agreement,” replied the Canadian Prime Minister Mark Carney, in response to the additional tariffs announced by President Donald Trump. “We are ready to step up discussions in the coming weeks,” Carney added. The US administration has announced its intention to impose a new 50 per cent tariff “on a significant number of Canadian goods”, Carney points out, referring to the latest US move “in a series of unilateral US trade measures, which began with the imposition of tariffs in clear violation of the Canada–United States–Mexico Agreement (USMCA)», which have affected the automotive sector, for example, prompting Ottawa, ‘in full exercise of its rights, to respond to these measures’. More generally, ‘in response to these measures and the threats to Canadian sovereignty, the provinces, territories and Canadian citizens from coast to coast have come together, taking the necessary steps to support our economy and defend our workers, farmers, businesses and families’.
Canada “believes in the benefits of free and fair trade, as demonstrated by our new government’s signing of more than 20 new economic and security partnerships. This trade dispute has led to higher costs for households, particularly in the United States. Canada is ready to work hard to resolve outstanding issues with the United States, to the mutual benefit of our citizens,” Carney added. In any event, Ottawa “will work tirelessly and take all necessary measures to strengthen the country and support Canadian workers, farmers, businesses and families”. Among other things, Trump and Carney watched the final of the World Cup between Spain and Argentina.
