WASHINGTON: US President Donald Trump on Tuesday announced to double the tariffs he previously imposed on Canadian steel and aluminium imports into the US while threatening to “shut down” its auto industry.
The development comes hours before a midnight deadline for ramping up the Republican’s increasingly global trade war.
Trump made the announcement on his Truth Social platform stating that he would increase tariffs on Canadian steel and aluminium imports by an additional 25 percent for a total of 50 percent duties on those commodities for the neighbour.
In addition to the 25 percent tariffs on steel and aluminium imports from around the world, including exporters from Brazil, Mexico, and the United Arab Emirates, the upcoming levies pose a significant threat to a wide range of products, from electronics to vehicles and construction equipment.
These tariffs, which currently allow no exceptions, have manufacturers scrambling to secure cost-effective domestic suppliers.
Canada, traditionally one of the United States’ closest allies and top trading partners, is facing the most aggressive action. The country is now embroiled in an exceptionally bitter war of words with the Republican leadership, along with ongoing threats to its sovereignty.
Canada’s incoming prime minister Mark Carney has vowed to stand up for “the Canadian way of life” and said Canadians are “always ready” for a fight if needed.
It is worth mentioning that Canada supplies half of US aluminium imports and 20 percent of US steel imports, noted industry consultant EY-Parthenon.
Trump said if tariffs including those on agricultural products were not dropped, he would hike taxes on the car industry, “which will, essentially, permanently shut down the automobile manufacturing business in Canada”.
Investors have been concerned about the economic effects of Trump’s trade policies, which could push up inflation in the US and beyond.
“This would make all Tariffs, and everything else, totally disappear. Canadians taxes will be very substantially reduced, they will be more secure, militarily and otherwise, than ever before, there would no longer be a Northern Border problem,” Trump said.
