Donald Trump, President of the United States said on Friday that he was considering reciprocal tariffs against Canadian dairy and lumber products. He cited what he called unfair trading practices.
Trump, speaking from the Oval Office accused Canada of exploiting American farmers by imposing high tariffs on imported dairy products.
Canada has been taking advantage of us for many years with tariffs on lumber and dairy products. Nobody ever mentions the 250% tariff, which takes advantage of our farmers. “That’s no longer going to be the case,” Trump stated.
He said that tariffs could be introduced by the US as early as next Friday, or even earlier. He said that if they don’t drop the tariff, then he would apply it to them.
Trade tensions escalate
Trump’s comments come after a turbulent week for trade policy.
He had imposed tariffs of 25% on Mexico, Canada and Chinese imports.
He signed an executive order on Thursday delaying the tariffs by nearly a month for all Mexican and Canadian products covered by the USMCA.
Trump made the decision after discussions with Mexican President Claudia Sheinbaum and negotiations between Canadian officials, Trump’s administration and Canadian officials.
Tariffs on Mexican- and Canadian-made goods that are covered by the USMCA have been postponed until April 2. However, the administration has not yet revealed its broader strategy for trade.
US prepares a percentage for each nation based on the existing tariffs and trade barriers on American imports.
Trump made comments on Friday that focused on Canadian lumber and dairy products. Sector-specific metal tariffs will be implemented next week.
Trump defends tariffs
Trump has defended the trade policies he’s implemented, saying they’ve boosted US manufacturing in particular, especially auto production.
He cited the creation of almost 9,000 jobs in auto manufacturing as evidence that “we’ve stopped this manufacturing collapse and begun to quickly reverse it.”
Auto industry leaders, however, have voiced concerns over supply chain disruptions caused by tariffs. This is especially true given the integration of North American Manufacturing under USMCA. Tariffs on auto-related products were delayed to April.
As a result of the policy uncertainty, markets were impacted, and on Friday, the Nasdaq 100 Index fell into correction territory, dropping more than 10% off its previous high.
Trump has in the past cited the stock markets as an indicator of the success of his administration. However, he downplayed this decline when the market fell after his tariff plan.
Jerome Powell, the Federal Reserve chairman, said earlier in the day that the central banks is not in a hurry to change interest rates. He stressed that they will assess the economic impact of Donald Trump’s policies and then make any decisions.
The post Trump Threatens Canada With Dairy, Lumber Tariffs by President Trump may change as new information becomes available
