TL/DR –
President Donald Trump has delayed the 50% U.S. tariffs on $20 billion worth of Canadian imports after a last-minute deal between the two countries. The White House stated that Canada has committed to remove what the Trump administration sees as discriminatory measures against U.S. alcohol, dairy and motor vehicle exports, although Canada has not confirmed these commitments. The delay on tariffs provides both countries time for further negotiations and avoids a further strain on relations.
Trump Delays 50% Tariffs on Canadian Imports
WASHINGTON (AP) — President Donald Trump has deferred the 50% U.S. tariffs on $20 billion worth of Canadian goods following a last-minute deal between the two nations. This announcement, disclosed via Trump’s social media platform, holds off further tensions between these long-time allies.
“Canada and the U.S.A., following document finalization, have a DEAL! Therefore, I have postponed the 50% Tariffs against Canada due to kick in tomorrow for three days,” Trump stated on Truth Social.
The delayed tariffs would have affected a range of Canadian products from hockey sticks to tongue depressors. Reacting to this, Canada threatened to retaliate with its own levies, intensifying a trade conflict between these nations that traded $880 billion worth of goods and services in the previous year.
READ MORE: U.S. and Canada negotiate to prevent Trump’s 50% tariffs
Almost 72% of Canada’s goods exports last year went to the United States. Implications of the new hefty tariff — paid by U.S. importers passing along costs to consumers through increased prices — are high risk, especially ahead of November’s midterm elections amid rising living costs.
Trump’s treatment of Canada signifies a significant deviation from the traditionally amicable relationship. In his attempt to bring manufacturing back to the U.S., Trump has slapped tariffs on Canadian goods and made inflammatory remarks about transforming Canada into America’s 51st state.
READ MORE: Trade talks get ‘nasty’ as Trump criticizes Canada’s leadership
Trump’s tariffs became the focus of his second-term economic agenda. He justified levying double-digit import taxes on almost every country by declaring the U.S. trade deficit a national emergency. To target Canada, Trump resorted to the Tariff Act of 1930, threatening 50% tariffs on goods accounting for nearly 5% of Canadian exports to the U.S.
The U.S. is currently renegotiating the US-Mexico-Canada Agreement. The threat of tariffs under Section 338 of the Tariff Act gives the United States bargaining power to seek new concessions from Canada.
Gillies reported from Toronto.
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