Trump strikes Canada with 35% prices

Canada was struck by customs tariffs of 35% on Friday. Therefore, after US President Donald Trump has carried out his threat of increasing the prices if Ottawa did not conclude a trade agreement.

The White House said that customs prices would not affect goods in accordance with the trade agreement between Canada. Similarly, the United States and Mexico, better known as Aceum.

Prime Minister Mark Carney had tempered the expectations of an agreement for Friday, saying that Ottawa would only accept an agreement “if there is one on the table that is in the best interest of Canadians”.

Carney described the negotiations of complexes, global and constructive.

Trump, on the other hand, complained several trump strikes canada 35% prices times from his neighbor in the North.

“I think Canada could be one of those who just pay prices, without really negotiating,” he said last week. Nevertheless, Trump signed the decree Thursday evening to impose an increase in customs prices in Canada. Furthermore, An information sheet of the White House justifies the change of rate by declaring that Canada “did not cooperate to stem the continuous influx of Fentanyl”. Consequently, also underlines the implementation of retaliatory tariffs by Ottawa.

In a statement published just after midnight. Moreover, Carney said that the government was disappointed with these actions and that “Canada represents only 1% of American imports from Fentanyl and works intensively on the reduction of these volumes”.

He added that certain industries. Consequently, including wood, steel, aluminum and automobile, will be harder, but that the government will endeavor to minimize the impact and protect Canadian jobs.

Trump repeatedly pushed the trump strikes canada 35% prices deadline for customs duties. In addition, but his sales program had some successes in the period preceding the deadline on Friday. This week. he announced the conclusion of agreements with the European Union, South Korea and Pakistan, although many details of these agreements remain vague.

Trump strikes canada 35% prices

Mexico benefits from an additional 90 -day delay

Commercial agreements with the United States have been announced for Japan. Vietnam, Indonesia, the Philippines and the United Kingdom. All these nations are faced with a certain level of basic customs tariffs.

Thursday. the president granted Mexico an extension of 90 days of his commercial negotiations, but did not make a similar proposal in Canada.

In another decree on Thursday. Trump increased his so -called “liberation day” customs prices on many other countries, these prices to be implemented within seven days.

The 50 % customs tariffs imposed by Trump on semi-finished copper trump strikes canada 35% prices also entered into force just after midnight. but the last customs duties exempt the raw raw material.

Copper prices are added to an increasing list of American sectoral customs tariffs. which include prices on cars, steel and aluminum.

“WITH FACT” Information sheet of the White House

The reaction to the customs tariffs was rapid. Candace Laing, President and CEO of the Canada Chamber of Commerce, declaring in a statement that the White House Information sheet was “without facts”.

“More pricing turbulence without facts do not advance the economic security of North America. Companies in Canada and the United States have an urgent need for certainty, “said Laing.

According to Michael Dobner. national manager of economic and political practices at PricewaterhouseCoopers Canada, around 80 to 90 % of Canadian products may be able to avoid higher customs tariffs imposed by Trump because they comply with the original rules of ACEUM

trump strikes canada 35% prices

This does not mean that all of these exporters have filled the necessary documents to avoid prices, he added.

It is not known exactly what proportion of Canadian exports to the United States complies with ACEUM.

Although no industry can be designated as the most threatened, Mr. Dobner stressed that any company having to use many parts from outside North America is threatened by the increase. in prices.

The president. chief executive officer of the Canadian Federation of the Independent Company, Dan Kelly, said that many small and medium-sized enterprises are concerned to have to bear the weight of customs tariffs.

They may not have the financial flexibility necessary to easily replace their inputs with North American products. or do not have the capacity to quickly obtain the necessary documents to prove their compliance with the ACEUM standard.

The federation data show that. so far, most small businesses absorb part trump strikes canada 35% prices or all of the costs linked to Trump prices, starting from the principle that Canada will find a solution.

“Will 35% be the drop of water that will overcome the vase?” said Mr. Kelly.

He added that if Canada remained in the “No Man’s Land” on Friday. Ottawa should unlock the funds collected by retaliatory customs rates to help companies in difficulty.

Mr. Kelly and Mr. Dobner have both declared that if the increase in prices will be terrible for certain companies. the permanent uncertainty that weighs on investments is the greatest concern for all sectors of activity.

“In general, even without this increase, there was a certain investment freezing in Canada,” said Dobner.