For several weeks now, much ado has been made about tariffs either proposed by the Trump administration for a variety of imported goods – including automobiles and associated parts and raw materials – as well as tariffs that have actually taken effect. Thus far, aside from an additional 10 percent tariff placed on goods coming from China, Trump has also slapped imported steel and aluminum with a 25 percent levy, which was slated to take effect tomorrow. Now, it seems as if Canada, specifically, is facing far steeper tariffs on steel and aluminum.
According to CNBC, President Donald Trump will raise tariffs on imported Canadian steel and aluminum from 25 percent to 50 percent, a move that comes in response to that country’s 25 percent tariff on U.S. electricity exports – which was retaliation for Trump’s previous 25 percent levy placed on Canadian goods. “Based on Ontario, Canada, placing a 25 percent Tariff on ‘Electricity’ coming into the United States, I have instructed my Secretary of Commerce to add an additional 25 percent Tariff, to 50 percent, on all steel and aluminum coming into the United States from Canada, one of the highest tariffing nations anywhere in the world,” Trump stated.
While these moves figure to impact a number of industries – including the automotive sector – Ford isn’t apparently facing much of a financial penalty, it seems. As Ford Authority reported yesterday, CFO Sherry Ford noted that the automaker gets around 90 percent of its steel from the United States, and with only around 10 percent coming from Canada, and added that “aluminum also is not that impacted for us.”
Trump has proposed a 25 percent tariff for all goods coming from Mexico and Canada, but has thus far delayed those levies on two occasions – just last week, the president gave automakers a 30-day reprieve, in fact. Ford CEO Jim Farley has specifically said that these Mexico tariffs could cause “chaos” for the industry, though he also supports tariffs on all imported automobiles, regardless of the country they’re coming from.
Comments
….PM Ford just “blinked”.
Guess the question I have is when will this Trump stupidity cease? I hope it’s not four years. I may have to move.
It is good to level the playing field. We are a big market with other countries taking advantage of the USA for years. Where are you moving to?
Maybe he will take Trump with him
I hope that those that voted for the Orange One are happy now. I did not vote for him and I am glad. I know some that did, and they don’t brag about it any longer and hide their large maga flags.
Seems like a lot of people have short memories and did not remember what happened 4 yr ago.
Countries trade so they can acquire the goods they need that will bring there products to market at the best price possible. Also it’s a good idea to not use up all your own resources. Tariffs are only good if you’re trying to protect a sector of the economy or for stopping other countries from dumping cheap goods into your country. Most imports are done because it’s to costly to make in your own country. As in labor costs. To believe you can build or produce most products at home is a major falsehood and will drive up prices and inflation. Thinking you can make money with tariffs is also a serious falsehood as tariffs will drive your trading partners to other countries………