As President Donald Trump continues to make it clear that it’s time for the U.S. to negotiate new trade treaties, other countries are joining the negotiations by imposing their own tariffs.
On Sunday, Canada imposed tariffs on $12.6 billion in U.S. goods.
“Some U.S. products, mostly steel and iron, face 25 percent tariffs, the same penalty the United States slapped on imported steel at the end of May. Other U.S. imports, from ketchup to pizza to dishwasher detergent, will face a 10 percent tariff at the Canadian border, the same as America’s tax on imported aluminum,” writes Newsmax.
In March, Trump introduced a 25 percent tariff on steel products and 10 percent on aluminum goods and will be effective in 15 days.
Trump has said in the past that he is opened to negotiations with Canada and Mexico and that these countries could be exempt of the steel tariffs if a “new and fair” North American Free Trade Agreement (Nafta) is signed.
Over the weekend, Prime Minister Justin Trudeau visited Leamington, Ontario, the home of French’s food-processing plant, where he told Canadians that they should “make their choices accordingly” when deciding to buy American products.
The new tariffs will be on a long list of U.S. consumer goods.
Also over the weekend, the European Union’s commission released a report to the U.S. Department of Commerce on Friday claiming that if Trump Administration does impose automotive tariffs, this will ignite a trade war ultimately costing the U.S. $294 billion.
“The report claims that tariffs would wreak havoc on cross-border supply chains in the automotive industry, risking higher costs for American industry, damaging exports and jobs, and pushing up prices for consumers,” writes Handelsblatt Global. “The report assesses the immediate damage to the US economy at $13 billion to $14 billion, with much larger indirect costs from retaliatory measures by the United States’ trading partners. Taking countermeasures against recent tariffs put on imported aluminum and steel as a guideline, the report assesses potential indirect costs at up to $294 billion.”
This report comes after Trump threatened to impose a 20 percent tariff on car imports last week.
Author’s note: It looks other countries finally realize that Trump is serious about negotiating new treaties, so they are starting to beef up their positions and make their own threats in response.