Trump slaps 250% tariff on Canadian dairy in latest trade twist
Donald Trump announced new tariffs on Canada, including a 250-percent tax on dairy products. "It's yet another twist in a serpentine trade policy that seems to shift on an hourly basis," writes CNN. The President of the U.S. had earlier decided to suspend the second tranche of fees for Canadian goods.
The President of the U.S., Donald Trump, announced plans on Friday (March 7) to introduce new tariffs on Canadian products, including lumber and dairy products. This is expected to occur within a few days.
In his Friday address at the White House, Trump stated that Canada has been "cheating" the United States for years regarding lumber and dairy products. He pointed to the Canadian tariff of about 250 percent on American dairy products, announcing that the U.S. would respond in kind.
"We may do it as early as today, or we’ll wait till Monday or Tuesday, but that’s what we’re going to do. We’re going to charge the same thing," said the U.S. President.
Another turn in U.S. trade policy
"Trump’s announcement gave investors, businesses and consumers another strong dose of whiplash. Just one day earlier, on Thursday, Trump announced a one-month pause on all tariffs on Canada and Mexico on products that comply with the US-Mexico-Canada free trade treaty, known as the USMCA. That had, at least temporarily, given many industries, especially autos and agriculture, a major sigh of relief," reports CNN.
The markets reacted to Trump's announcements with declines, although they later partially recovered losses. Michael Block, a market strategist at Third Seven Capital, noted that "the market has trouble digesting Trump's multi-dimensional chess game."
"Layoffs are mounting, hiring is slowing, consumer confidence is eroding and inflation is picking up again. Tariffs could worsen all of those factors," writes CNN, but it also notes that the Canadian fees on U.S. dairy products, including 241 percent on milk, have long caused dissatisfaction among American farmers.
Trump has also been criticizing Canadian tariffs on American lumber for weeks, asserting that the U.S. can do without it. However, experts warn that the fees might raise the cost of building homes in the U.S., where 30 percent of lumber comes from Canada, and currently there are anti-dumping and countervailing duties of 14.5 percent on it.
