President Trump’s increased tariffs on steel and aluminum imports took effect, with exemptions, duty-free quotas, and product exclusions expiring. Trump aims to reorder global trade norms in favor of the U.S. The tariffs impose a 25% duty on all imports of metals and extend to downstream products. Trump threatened Canada with doubling the duty to 50%, but backed off after negotiations. U.S. financial markets reacted negatively to the tariff escalation, but U.S. steel producers welcomed the move.
The U.S.-Canada trade war escalated as Prime Minister Trudeau prepared to hand over power to Mark Carney. Trump criticized Canada’s high tariff rates on dairy and threatened reciprocal tariffs. Canada could impose restrictions on oil exports or levying export duties on minerals if U.S. tariffs persist. The U.S.-Canada trade remains mostly duty-free under the USMCA trade deal, but Trump continues to complain about Canada’s practices. The rise in fears of a recession is linked to Trump’s hyper-focus on tariffs since taking office, causing concerns among economists.
Overall, Trump’s tariffs are causing uncertainty in financial markets, weakening consumer confidence, and leading to fears of a recession. The impact of the tariffs on Canada and other trading partners remains to be seen, but the escalation of trade tensions could have significant economic consequences.
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