Trump Piles More Trading Tensions Atop Canada New Tariffs on long Keys Commodities

 

Trump Piles More Trading Tensions Atop Canada New Tariffs on long Keys Commodities

Trump Piles More Trading Tensions Atop Canada New Tariffs on long Keys Commodities

Ex-U.S. President Donald Trump is causing waves of tension again in the international trade by joining a widespread package of new duties on Canadian products and raw materials. The action, announced at a rally in Ohio, on July 11, is a clear indication that Trump is going hardline in wake of a possible re-election bid to the White House.

Canadian Imports to Be Relieved of 35 per cent Tariff

The highlight of the announcement is a 35 percent tariff applied to all of the Canadian imports, starting with lumber, dairy, aluminum, and automotive parts. This new tariff regime will go into effect August 1, 2025, so long as it is reviewed formally by U.S. trade agencies.

According to Trump, the actions were the only way to save American jobs and manufacturing as Canada was flooding its markets with cheap, subsidized goods. Accusing the tariffs of being unjustified and reckless, Canadian prime minister Justin Trudeau promised to retaliate.

And attacking these three industries will hurt Canadian workers, in a statement made by Trudeau during a press conference in Ottawa. Protectionism is harmful to all.

Wider Trade Measures on Copper and Beyond

Trump has also made announcements that his administration is ready to introduce similar tariffs on copper imports in the Latin American countries with names of Chile, Peru, and Brazil all cited as possibilities. Copper is one of the most important elements of electronics and renewable energy systems, which is the heart of some U.S. industries.

Later, Trump threatened to impose a possible tariff on Japan and South Korea due to one-sided trade deals that he referred to and said that he would renegotiate all of them.

World Market Reaction

Markets responded very quickly. Dow Jones Industrial Average lost 1.2 percent and Canadian stock indexes showed unstable positions as well as European indexes. The U.S dollar declined a little against the Canadian dollar and the Euro with investors fearing retaliatory tariffs and supply chains.

Trade officials in Europe Union were alarmed and termed the announcement as destabilizing and may spur another bout of transatlantic trade conflicts.