Visit DC, Canadian leaders face Trump’s Hawks Tariff
Another week, and another circle of tariff threats and proposal for annexation of President Trump.
It began with the announcement of a policy that imposes 25 percent of tariffs to all the imports of steel and aluminum. In the case of Canada, these tariffs would be stacked at the top of the previously introduced 25 percent of tariffs to most Canadian exports, which are 30 days for a period of 30 days. If Mr. Trump follows both, the steel and aluminum rate will be a whopping 50 percent.
[Read: Nations Denounce Trump Tariff on Metals and Warn of Retaliation]
Furthermore, the president told his advisers to make sense of new tariffs that take into account trade obstacles and other economic approaches to US trade partners, which his administration considers dishonest. It is a great approach that includes not only the tariffs that other countries place on US goods, but also the taxes that charge for imported products, such as GST, Canada; All subsidies that give industries; and their courses.
“Canada was very bad for us in the store, but now Canada will have to start paying,” said Mr. Trump as he announced the announcement. “Canada will be a very interesting situation because, you know, we just don’t need their product.”
Among the things that could be targeted, according to the factual list published by the White House, is the 3 -focal tax that Canada began to sign up last year on Canadian revenues of large technological companies such as Google, Amazon and Netflix. Again, all the tariffs coming out of this review will be added to everything Mr Trump has already threatened to impose on Canadian export.
[Read: Trump Says He’ll Rework Global Trading Relations With ‘Reciprocal’ Tariffs]
A small number of US business leaders began to speak against Mr. Trump’s tariff plans if not directly speaking for Canada.
Jim Farley, the Ford CEO, said at an industrial conference that “25 percent of Tariffs across Mexico and the Canadian border will blow a hole in the US industry that we have never seen.”
Talking about Mr. Trump’s plan to revive US tariff production, he added: “So far, what we see is a lot of costs and a lot of chaos.”
[Read: Ford Chief Executive Says Trump Policies May Lead to Layoffs]
Mr. Farley’s message echoes what Canadian officials tell everyone to listen to in Washington. This week, all 13 provincial and territorial leaders visited American capital to bring out the argument and others about the importance of trade between countries and observations on the interconnected nature of their economies.
While 11 premiere ultimately received a Last-minute meeting at the White House, it was with the deputy head of Mr. Trump for the legislative questions and the president’s director of the staff.
“I don’t think the premiere have met with people who are very significant,” Gary Mar, President and Executive Director of the Canada West Foundation, a research group for public policy based in Calgary, told me.
Mr. Mar was an official representative of Alberta in Washington from 2007 to 2011. He said that the town of Canada in the United States has since been significantly moved.
“I think our relationship with the United States has changed forever,” said Mr. Mar. “Donald Trump is not a reason for this. He is a symbol. People who went to war with the United States – that generation is gone. And in the US – in the culture of achievements, the culture of complaints was replaced.”
Cultural moves aside, Canadian politicians who hope to change their minds in Washington can bring out arguments that many people close to Mr. Trump reject.
Many, if not the majority, Mr. Trump’s tariff actions have closely monitored Robert E. Lightthzer’s ideas, an American trade representative in the first Trump administration.
Mr. Lighthizer does not, in order to put it mildly, believe that he has been using the shift towards the more open trade in the last four decades of the United States.
“The global trade system failed our country,” Mr. Lighhizer, who led the American side during the naphta negotiations, wrote this month in an essay for a guest compartment for the New York Times opinion. “It has not failed because the free trade does not work. It failed because there is no free trade.”
[From Opinion: Want Free Trade? May I Introduce You to the Tariff.]
Although Mr. Lighthizer in this essay does not particularly discuss trade with Canada, it is a little good to say in his book: “No trade is free of charge: Changing the course, attending China and helping US workers.”
“Canada is quite a parochial in reality – and sometimes a pretty protectionist country,” he wrote. “For years, Canada has managed a program of management of dairy products that would make a Soviet committee.”
Mr. Lighthizer, who loves Mr. Trump Abhors trade deficit, proposes a new global trading order that would divide the world economy into two. In one group of land, they would generally charge for lower tariffs. However, if one of the members of the group developed a trade surplus, the rest would increase the tariffs relative to export until that excess disappeared. And this group of countries would charge high tariffs to the countries outside of it-“undemocratic countries, as well as those who insist on using beggars and neighbors, aggressive industrial policies for leading great Viskovs,” he writes.
In a Mr. Lighthizer’s profileElizabeth Williamson and Ana Swanson, my colleagues in Washington, say that when economists, like Canadian politicians, claim that high tariffs will only increase the prices of Americans and even cause a recession, “Mr. Lighhizer simply claims that economists are not right.”
Trans Canada
This section wrote Vjosa IsaiA reporter-stroke based in Toronto.
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Ian Austen Reports on Canada during and with headquarters in Ottawa. Originally from Windsor to Ontario, he covers the politics, culture and people of Canada, and has reported the country for two decades. Can be reached austen@nytimes.com. More about Ian Austen
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