washington dc1 minute ago
- copy link
US President Donald Trump has announced to impose 10% additional tariff on Canada. Canada is the only country other than India on which additional tariff has been imposed. Earlier in August, Trump had imposed 25% additional tariff on India for purchasing oil from Russia.
America has imposed 35% tariff on Canada. After the new announcement it will become 45%. This will be the highest tariff after India and Brazil. Trump had stopped talks on tariffs with Canada two days ago. In fact, they were angered by an advertisement made against a tariff.
In this advertisement, the words of former US President Ronald Reagan were used, in which he was calling the tariffs harmful for every American.
Canadian advertisement which Trump called fake
Advertisement run during baseball match
This advertisement was created by the Canadian state of Ontario. However, after Trump became angry, the Premier of Ontario said that he would withdraw this advertisement after Sunday. Meanwhile, this advertisement was run before the first game of the World Series on Friday.
A day after this incident, the US President posted on social media about increasing the tariff and said – Canada has been caught red-handed, which ran a fake advertisement based on Ronald Reagan’s speech on tariffs. Reagan was very fond of tariffs for national security and economic purposes, but Canada said he did not like them.
Trump further said, Canada should have removed that advertisement immediately but they did not do so. Knowing it was a hoax, it was allowed to run during the World Series last night.
Let us tell you that the World Series is the annual championship series of baseball played in America and Canada.
After Trump’s announcement, it is not yet clear what legal authority he will use to impose this extra tariff. The White House has also not given information from which date this 10% extra tariff will come into effect.
Canada suffers loss from US tariffs
According to news agency AP, Trump’s tariffs have caused huge damage to the Canadian economy, and Canadian Prime Minister Mark Carney is trying to work with Trump to reduce them.
According to a JP Morgan report, this tariff could cause a loss of approximately 1.2% in Canada’s GDP in the next 5 years.
More than three-quarters of Canada’s exports go to the US, and approximately 3.6 billion Canadian dollars (2.7 billion US dollars) worth of goods and services cross the border every day.
Apart from imposing 35% tariff on Canada, the US has also imposed 50% tariff on steel and aluminium. However, most goods to the US are covered under the US-Canada-Mexico Agreement (USMCA), and are free from tariffs.
Both Trump and Carney will attend the Association of Southeast Asian Nations (ASEAN) summit to be held in Malaysia. But Trump told reporters traveling with him that he had no intention of meeting Carney there.
Source link
[ad_3]
