Trump threatens Canada with 10% extra import tax over tariffs ad
When Reagan gave his radio address in 1987, he imposed “selective” tariffs on Japanese electronics for what he saw as unfair trade practices. At the same time, he used the speech to urge Congress not to pass a protectionist trade bill targeting Japan, advocated free trade as the best way to ensure U.S. prosperity and protect American jobs, and made the case against tariffs.
It was unclear what legal authority Trump would use to impose additional import duties, and the president did not specify the scope of his new measure. While Canada faces a 35 percent U.S. base tariff, that rate does not apply to most Canadian goods, including millions of barrels of oil, because of the exemption applied to products and shipments made under U.S.-Mexico-Canada Agreement rules. It’s a trade deal that Trump negotiated during his first term but later broke down and is scheduled to be reconsidered.
Steel and aluminum products are subject to a 50 percent U.S. tariff on foreign metals, and Canadian-made cars and trucks may be only partially exempt from the 25 percent tariff Trump has imposed on most foreign cars.
US President Donald Trump left the White House for his trip to Asia.Credit: access point
Trump’s tariffs have disrupted one of the world’s largest bilateral trade relations and dealt a heavy blow to the Canadian economy. More than three-quarters of Canadian exports go to the United States, with approximately C$3.6 billion (AU$3.9 billion) worth of goods and services crossing the border every day.
Candace Laing, president of the Canadian Chamber of Commerce in Ottawa, said in a statement: “Tariffs at all levels remain a tax, first on America and then on the competitiveness of North America as a whole. We hope that this threat of escalation can be resolved through diplomatic channels and further negotiations.”
Canadian Prime Minister Mark Carney is trying to work with Trump to lower tariffs. Both leaders will attend the Association of Southeast Asian Nations summit in Malaysia, but Trump told reporters traveling with him that he did not intend to meet Carney there.
Canadian Prime Minister Mark Carney before boarding a government plane in Ottawa to attend ASEAN talks in Malaysia.Credit: access point
After Trump first halted talks, Carney said Ottawa was ready to resume talks “when the Americans are ready” and that the two sides were making progress on steel, aluminum and energy.
By contrast, White House economic adviser Kevin Hassett told Fox News that negotiations with Canada “didn’t go well” and Trump was “very frustrated.”
The White House and the Canadian prime minister’s office had no comment on the tariff increase on Sunday. A spokesman for Ford said its earlier comments still stand.
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Trump complained that the ad was aimed at influencing the U.S. Supreme Court ahead of arguments scheduled for next month that could decide whether Trump has the authority to impose broad tariffs that are a key part of his economic strategy. Lower courts ruled he overstepped his authority.
Trump said the court would create a disaster if it overturned country-by-country tariffs, including forcing the U.S. government to refund billions of dollars in taxes to companies.
AP, Bloomberg
