The relationship between Canada and the United States again tightened this Tuesday, when US President Donald Trump threatened his neighbor with duplicating the tariffs planned to his siderurgy before going back hours later.
In the morning, the president announced in his social truth network that he would double the customs tariffs about Canadian steel and aluminum that will enter into force on Wednesday, passing them from 25% to 50%.
Thus reacted to the decision of the Canadian province of Ontario to collect a surcharge to exports of electricity to three US states.
But in the afternoon, after a telephone conversation between the Prime Minister of Ontario, Doug Ford, and the US Secretary of Commerce, Howard Lutnick, Trump changed his mind.
«There is someone very strong in Canada who announced that it would impose a surcharge to electricity. (…) That would have been something very bad and it won’t do it, respect that, ”said Donald Trump in the White House. And he added that he would probably reconsider doubling tariffs.
His commercial advisor, Peter Navarro, corroborated it. “I can confirm that to them,” he told a press conference consulted on whether the president would renounce the customs and aluminum customs of his neighbor to 50%.
Ford said he will do the same with electricity, after a “productive” discussion with Lutnick, with whom he plans to meet Thursday in Washington.
Trump’s new threats arrived hours before midnight expires the deadline that the president established to impose new levies on these products.
These customs rates, for which it does not contemplate exceptions, will affect electronics, the automotive sector and construction.
The most harmed country will be Canada, a historical ally and, together with Mexico, its partner in the North American Free Trade Agreement (T-MEC).
Canada supplies half of aluminum imports in the United States and 20% of steel, says the consultant Ey-Parthenon.
The future Prime Minister of Canada, Mark Carney, promised on Tuesday that his country’s response when he takes power will have “a maximum impact on the United States and a minimum impact on Canada.”
Sunday already adopted a challenging tone, stating that his country “will never be part of the United States.” «May Americans not deceive themselves. In commerce as in the hockey, Canada will win, ”he launched.
But Trump warned in Truth Social that if it is not eliminated what he calls “Atiffs Atiffs atrocious” will impose tariffs on the import of cars from April 2 that could close “permanently the car manufacturing business in Canada.”
In the same message, Trump estimated that “the only sensible thing” for Canada is to become the “51 state” of the United States.
“This would make all tariffs, and everything else, disappeared completely,” he said.
“Canadian taxes will be reduced substantially, they will be safer, militarily and in other aspects, which never before, there will no longer be the problem on the northern border,” said Trump, who accuses his neighbor of not doing enough to stop the illegal entry of Fentanil, a synthetic opioid that has caused a health crisis in the United States.
Before Trump’s tariffs some lament and others congratulate themselves.
Drew Greenblatt, owner of the Metal Products manufacturer Marlin Steel based in Baltimore, is delighted with the new tariffs on imported steel because they have increased their orders.
“We only use American steel, so we are delighted with tariffs,” he told AFP.
Some voices warn of consequences. Producers who use foreign steel ensure that the highest import costs will be felt in the main world economy.
An important American steel manufacturer warned that American steel prices will increase to match the high costs of imported products.
Supply restrictions push prices up, making articles such as nails, for example, be more expensive, explained the manufacturer, who has asked to remain anonymous.
Many economists fear that Trump’s tariff measures have an inflationary effect.
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