[Listen to “The Daily”: Elbows Up: Canada’s Response to Trump’s Trade War]
What is the following: Mr. Ford, together with Dominic Leblanca, the new Minister of International Trade and François-Philippe champagne, a new finance minister, met with their colleagues in Washington: Howard Lutnick, American Trade Secretary, and Jamieson Greer, US MP. The message they received, reports Matin, “there was no Canada, or any other country in the cross -haired President Trump, could avoid a new circle of deleted tariffs on April 2.”
[Read: Tariff Pain First, Deals Later, U.S. Tells Canada in Key Meeting]
These tariffs will be “reciprocal” – that is, the United States will apply the same tariff against exports from Canada, which exists exports from the United States.
Due to the USMac (or Cusma, as it is called in Canada), the free trade agreement signed in accordance with the first Trump administration, Canada has relatively little tariff on US imports, except for some agricultural products, especially dairy products, which are part of the supply control system. So in theory, reciprocal tariffs can have a relatively little effect.
But there is a savage ticket. Mr. Trump sees a tax added tax, such as goods and services taxes, as tariffs because they do not apply to exports not shared by most trade economists. How Mr. Trump could go for the GST, and that this could affect the trade between Canada and the United States, it is not clear.
A much larger trade problem can explode on April 2, when the suspension of Mr. Trump about cleaning and potentially devastating 25 – % tariffs on most Canadian exports and 10 -firm energy tariffs and some minerals expire. (These accusations are already imposed by some Canadian exports not certified as in accordance with the rules of content in North America of the USMac.)
