Trump customs duties | Midnight less for Canada

(Washington) Unlike Mexico, Canada had not been able to obtain another suspended price from the White House while the screw must come into force this Friday. The consolation price for Canadian companies: most should be able to get there.

Even if the negotiations between Ottawa and Washington continued on Thursday in the hope of finding common ground before the deadline set at 1^is August by our southern neighbors, American president Donald Trump did not seem enthusiastic, in the oval office.

For the 47^e Tenant of the White House, the most recent irritating from Canada was Prime Minister Mark Carney’s intention to recognize a Palestinian state next September-like France and the United Kingdom.

“I didn’t like what they [le Canada] said, said Trump in a press briefing Thursday at the end of the afternoon. This is not a negotiation [dealbreaker]. We haven’t talked to Canada today. We will see. »»

The President had sent a letter to the Canadian Prime Minister on July 10 in which he threatened to increase to 35 %, compared to 25 % currently, customs duties on Canadian exports due to a trade agreement by Friday.

So far, Washington has announced agreements with the United Kingdom, the European Union, the Philippines, Indonesia, Vietnam, Japan and, in extremis in the night, with South Korea.

Korean, Japanese and European products will now be taxed up to 15 %. The American Secretary of Commerce, Howard Lunick, also said on Thursday, that agreements had also been found with Cambodia and Thailand, without giving more details.

A shield

In principle, Canadian exporters should be able to cash in.

The reason? Heads of the White House had indicated to various media that products in accordance with the Canada-States-Mexico (ACEUM) free trade agreement would remain exempt from customs duties, as is currently the case.

Even if sectors such as aluminum and steel, timber and automotive are the subject of sectoral customs duties, most Canadian exports have hitherto escaped customs taxes.

According to a study published in July by the Royal Bank, which cited data from the United States census office, 91 % of Canadian exports for the United States had crossed the border without customs law.

The director general at Courage BGL, Nicolas Dolbec, noticed it.

“You could say that the last month was one of the least busy with regard to the requests of our customers on the issue of customs duties,” he illustrates. The notion [des exemptions prévues à l’ACEUM] seems to have been well assimilated. »»

Nevertheless, the uncertainty which stems from commercial tensions leaves traces, according to the Federation of Chambers of Commerce of Quebec (FCCQ).

According to the organization, investments, for example, flexed 318 million in the manufacturing niche because companies preferred to remain on the side lines in the current context. Added to this is a decrease in exports to the south of the border and a decrease in the level of employment in several sectors.

And Thursday, Canada had still not been able to imitate Mexico, which, in extremis, was able to obtain a 90 -day stay with its Washington to continue the negotiations.

Trump had previously threatened Mexico to raise customs duties on exports from this country to 30 %. Despite the postponement, sectoral rights on steel and aluminum, copper and the automotive sector remain in place.

“In addition, Mexico has agreed to end its non -tariff trade barriers immediately, which were numerous,” said the American president, on his Thruth Social platform. We will have with Mexico in the next 90 days in order to sign a trade agreement during this period, or later. »»

Legitimate, customs duties?

A few hours before the entrance to what had the appearance of a suite on the “Liberation Day” of April 9, where customs duties had been announced at 180 countries, a Federal American Court of Appeal began to look at the legitimacy of these tariff barriers.

The Trump administration challenges a decision rendered last May by an American commercial court, which had decided that the American president could not impose customs duties when he seems.

This judgment blocked one of the main strategies of the White House, which is based on a 1977 law (International Emergency Economic Powers Act), which allows the president to impose the necessary economic sanctions in an emergency.

Until Donald Trump’s return to the oval office, this law had never been used by a president to impose customs duties.

No decision had been made on Thursday. It could take several weeks, see months.

-with the Canadian press and the France-Presse agency