The president of the United States, Donald Trump, is giving another tariff coup to Canada, signing an executive order on Wednesday that will affect all non -American cars with strong import taxes.
Trump said that the United States will apply a 25 percent tariff on these imports, but it is not clear when they apply.
The president said that car rates will begin on April 2, but suggested that they could start a base rate of 2.5 percent.
“What we are going to do is a 25 percent tariff on all cars that are not carried out in the United States. If they are made in the United States, there is absolutely no fee. We will begin with a 2.5 percent base, which is what we were, and we will go to 25 percent,” Trump told journalists of the Oval office.
The cars are the second largest Canadian export after oil, and with much the most lucrative product that Canada sells to the world, linked to hundreds of thousands of Canadian jobs.
That makes these rates potentially more significant than any of Trump’s other commercial threats, including 10 percent gravation on energy and 25 percent tariffs on steel and aluminum.
But the impact will depend on whether tariffs apply to completely assembled cars or include automotive parts. The United States and Canada automotive industry is so integrated that the pieces often cross the border several times.
Flavio Volpe, president of the Association of Automotive Parties manufacturers, said he is creating paralyzing uncertainty for the industry, and not only in Canada. The threat of constant rate and always evolution also scares investors in the United States, he told CBC News.
“[Trump] Move the sticks twice a day, “he said Wednesday while waiting for the announcement.” You don’t know what to expect when you get up in the morning. “
Speaking before the ad, Volpe predicted a rate of 25 percent, but with some exemptions, possibly in pieces of North America negotiated under the rules in the agreement that Trump made, the Mexico and Mexico Mexico Agreement.
Canada is, in fact, a rare commercial partner for the US. Unlike the rest of the world, it actually buys more cars and pieces from the United States than it sells.
Trump’s first administration produced a report on automatic tariffs and barely mentions Canada. He showed that Canada’s participation in the production of North America has been relatively stable since the 1980s, and that the real change has been from American production to Mexico.
But this second Trump administration is adopting commercial protectionism and the threat of this, hoping to direct production to the United States
