Trump targets Canada with steep tariffs on dairy and lumber
Donald Trump announced new tariffs on Canada, including a 250% 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 United States had earlier decided to suspend the second tranche of fees for Canadian goods.
The President of the United States Donald Trump on Friday, March 7, announced plans to introduce new tariffs on Canadian products, including lumber and dairy products. This would take effect 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% on American dairy products, announcing that the United States 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 US President.
Another turn in US 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. 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 US dairy products, including 241% on milk, have long caused dissatisfaction among American farmers.
Trump has also been criticizing Canadian tariffs on American lumber for weeks, asserting that the United States can do without it. However, experts warn that the fees might raise the cost of building homes in the United States, where 30% of lumber comes from Canada, and currently, there are anti-dumping and countervailing duties of 14.5% on it.
