President Donald Trump has threatened to impose a 25% tariff on all products entering the country from Canada and Mexico.
The tariffs will be one of his first executive orders when he takes office on January 20, as part of a crackdown on illegal immigration and drugs, the US president-elect claimed on Monday on his social media platform Truth Social. He said it would be.
Politicians panicked on hearing the news, madmen jumped in and economists warned that the move could have devastating effects. fuel inflation and have Significant impact on supply chain.
But how does all this affect you? Is it a serious threat? And while we’re asking… what the heck? teeth Tariff? Listen, there’s no need to judge here. Let’s have some coffee.
Conservative former industry minister James Moore details how the 25% tariffs threatened by President Donald Trump will hurt Canada’s economy. Plus, About That’s Andrew Chang joins The National to break down the link between VIA Rail’s chronic performance problems and plummeting revenues.
What is a price list?
Customs duties are import taxes, typically levied as a percentage of the price a buyer pays a foreign seller. In the United States, customs duties are collected by Customs and Border Protection officers at 328 ports of entry across the country.
For example, the customs duty on passenger cars is 2.5%. For golf shoes, it’s 6%.
Countries that have trade agreements with the United States may have lower tariffs. Most goods can move duty-free between the United States, Mexico, and Canada. United States-Mexico-Canada Agreement It went into effect during President Trump’s first term.
Who will pay them?
President Trump claims that foreign countries are paying for the tariffs. In fact, it is the importer, the U.S. company, that pays the customs duties, and the money goes to the U.S. Treasury.
However, companies typically pass the increased costs on to their customers in the form of higher prices. Economists say consumers typically end up paying the tariff bill.
Tariffs can harm foreign countries by making their products more expensive and difficult to sell abroad.
What impact could rate hikes have on Canada’s economy?
The United States is Canada’s largest trading partner. Ian Lee, an associate professor at Carleton University’s Sprott School of Business in Ottawa, explains that about 60 to 70 per cent of Canada’s total trade is with the United States.
Lee said President Trump’s proposed additional U.S. tariffs on Canadian goods would be “devastating” to Canada’s economy and currency. Two-thirds of Canada’s GDP is dependent on tradehe said. CBC News Network Monday evening.
According to Canada Trade Statistics Report 2024Exports alone support approximately 3.3 million Canadian jobs, or approximately one in six jobs. Just under 2 million jobs in Canada depend on exports to the United States, Lee explained.
“The consequences would be devastating for Canada,” Lee said. “There’s no way to cover this up. This is completely bad news.”
The Bank of Canada said Tuesday that if President Trump follows through on his threat, it would impact both countries’ economies. Economists say it could accelerate inflation in Canada, constrain growth and distort the trajectory of interest rates.
Will Canada fight it?
Prime Minister Justin Trudeau and his country’s premiers will hold an emergency meeting on Wednesday to discuss the threat of new high tariffs from the United States and devise a response plan, which Trudeau calls “Team Canada.”
Prime Minister Trudeau said Tuesday night that he had a successful phone conversation with the U.S. president-elect on Monday night, noting the effective ties between the two countries.
Prime Minister Trudeau also spoke last night with Ontario Premier Doug Ford, who chairs the Association of Premiers, known as the Commonwealth Council, and other premiers.
Ford had written to Prime Minister Trudeau asking for an emergency meeting to discuss a unified approach to everything from trade and border security to energy, defense and cross-border supply chains.
Ford said Tuesday that the threat was “like being stabbed in the heart by a family member.” He added that if the incoming Trump administration enforces tariffs, Canada will be forced to retaliate.
Meanwhile, the Canadian Chamber of Commerce said Canada urgently needs to adapt its approach to trade negotiations with the U.S., said Candice Lane, president and CEO of the chamber. “Just being a ‘good neighbor’ to the United States won’t get us anywhere,” he said in a statement Tuesday.
Should we take this threat seriously?
This isn’t the first time Trump has made late-night remarks. declaration It caused a lot of reactions.
Canada’s Minister of Innovation, Science and Industry Francois-Philippe Champagne said Monday that he takes President Trump’s threats seriously and will begin discussions on topics such as how it will affect the U.S. economy, particularly the energy sector.
With two months left in President Trump’s term, “we still have weeks to engage,” he said.
“The bottom line is, we’re going to do what we always do, stand up for Canada, stand up for workers.”
Windsor, Ont.’s economy is so tied to cross-border trade and the auto industry that Mayor Drew Dilkens reacted to U.S. President-elect Donald Trump’s announcement to impose a 25% tariff on goods arriving in the U.S. from Canada. reacted to. And Mexico. Dilkens called for a strong Canadian response to President Trump’s “probably negotiating tactics,” saying, “If we don’t get this right, a lot of jobs are at risk.”
Gordon Giffin, former U.S. ambassador to Canada, said: CBC News Network On Tuesday, Trump said his style is to make bold statements on social media at night.
“My gut feeling, although clearly not based on fact, is that this is intended to provoke action and activity in the two months between now and the inauguration,” Giffin said.
In Windsor, Ont., whose economy is deeply tied to cross-border trade and the auto industry, Mayor Drew Dilkens called for a strong Canadian response to Trump’s “probable negotiating tactics.”
“If we don’t get this right, a lot of jobs are at risk,” he says.
