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After spending a few weeks hitting Canada and Mexico, Donald Trump turned his attention on Wednesday to a brand new target: the rest of the Earth planet.
The US president has expanded his trade war, imposing the widest set of tariffs in generations, effectively reset the post -war trade system.
The only good news for Canada, what is it, is that when Trump came quickly and furiously, swinging with new tariffs, did not need a new lump.
The good news ends there.
The bad news is that the previously announced tariffs will remain in place: potentially Disconnected car tariffs That blow Thursday, steel tariffs and aluminum than 25 percent, 10 percent on energy and potassium, and 25 percent on certain other goods.
For Trump, this was a personal moment.
After displaying a table with a list of different tariff percentages, he will charge some countries – Canada and Mexico were not on the chart – US President Donald Trump said there would be a 10 percent of a minimum basis on goods from foreign countries.
Standing on the White House lawn, he called it the highlight of the old dream, given the decades as a colored protectionist.
“I’ve been talking about that for 40 years,” Trump said.
“If you look at my old speeches when I was young, very convenient, in my old speeches … I would talk about how these countries tear us away.”
He added, “It’s an honor that he can finally do.”
And “this” was referring to the imposition of a tariff in the range of 10 percent to about 50 percent in some countries-shocking not only markets, but potentially aligned the planet a geopolitical map, and now he is withdrawing on this hemisphere.
Asia is, Latin America in
We will see which countries, if any, negotiate a better agreement. But the initial pattern is clear: Trump switched the tables to Asia.
Where the United States has grown allies against China, trade partners are now facing 46 percent (Vietnam), 49 percent (Cambodia), 24 percent (Japan), 32 percent (Taiwan), 26 percent (India) and 37 percent (Bangladesh). China also received a 34 % tariff.
Anyone who sells clothes or electronics in the US now has some incentive to switch production to Latin America, where tariffs are generally 10 percent.
“I think there are huge geopolitical implications,” said Chad Bown, a trade expert at the Peterson Institute in Washington, and a former main economist of State Department Biden.
But he added an important warning.
There are so many uncertainty as long as these tariffs will last, and it takes time to redesign the supply chains, so it is not clear that anyone can make a long -term prerequisite for investment based on the number of Wednesday.
Also, the elements of the plan appeared in a hectic connected together. The Trump list included several non-Zemals, such as unprecedented Heard and McDonald Islands, an infertile Antarctic archipelago belonging to Australia, which now faces 10 percent of tariffs.
Accordingly, waves of uncertainty are surely passing through Canada. And, in Canada, no place risks that it is more severely affected by the car.
Canada faces pain
The Tariff plot should enter into force on the largest Canadian product produced – this is up to 25 percent on fully assembled vehicles and some parts, while other parts are faced with none.
A car worker in southern Ontario says that his fellow colors are now making great shopping, fearing release.
“There will be a hell of a time,” Jayson Mercier told CBC News. “Here we are again, much like (economic crisis) 2008. – Where we don’t know if we have a job.”
One Canadian-American trade advisor says Canada was better than most countries in the announcement on Wednesday. But it’s a cold comfort for certain sectors, he added.
“Autos will be massively influential for Canada,” said Eric Miller, Canadian head of adviser Rideau Potomac in Washington.
“It’s a huge pain for Canada. You will see a huge amount of restructuring and diverting in the North American Auto Sector.”
Prime Minister Mark Carney, speaking on Wednesday from Parliament Hill, says Canada will act with a ‘purpose and force’ in the fight against new American tariffs. President Donald Trump slapped the new 25 percent tariffs on foreign cars, but Canada was spared 10 percent basic tariffs applied to many other countries.
One player in the industry put him even harder in a post on social media. He envisaged an industrial break within a few days, not just Canada.
“Auto. Tariff. Package. Will. Shup.
“Don’t distract. 25% of tariffs are 4 times more than 6/7% of the profit margins of all companies. Mathematics, not art.”
Certain goods traded by the rules of the Canada-Moxico Agreement does not face tariffs, under the exception, Trump announced a few weeks ago.
The estimates differ on how much goods will face duties, but most of the exports of Canada in the United States seem to be truly confronted with tariffs.
“I’m not sure anyone knows right now (the exact percentage),” Bown said.
In Washington, the opponents of Tariff rained on Trump’s big moment.
When he began to speak, the American Senate, guided by the Republicans, began hours of discussion of the mainly symbolic vote to reject his tariffs to Canada.
Some members of Trump’s own parties voted with Democrats in an effort to cancel the first series of Tariff Canada. It is a convicted effort, although the Senate passed, 51-48. The house does not plan to take it over, and Trump would still veto.
But it is intended for the political black eye Trump on the day he announced his tariffs, but those in Canada are particularly unpopular, according to polls.
The first speaker was Rand Paul, a Kentucky senator who was one of the few Republicans who supported the measure.
He took off the trump of Trump’s actions – calling them “crazy.”
Paul made fun of Trump’s idea that Canada was a threat to national security because of the Fentanil trade. He said more fentanila came from the US than another way, he called Canada a valuable trading partner, and said Trump would increase the costs of Americans.
In addition, in principle, the Libertarian MP in principle has done the idea.
He said that there is almost a millennium tradition, which returns to the Magna Carta through the American Revolution, that the legislation should be approved by a new tax not just one leader.
This is exactly what opponents call Trump’s plan: the biggest sudden increase in taxes in American history.
“Taxation without representation is tyranny,” Paul said. “Conservatives realized that tariffs were taxes on the American people.”
He added, “What happened? Did we suddenly give up all the things we believed in?”
Recently, there are no authority greater than Trump’s authorities. They could stop it if they wanted, via a congress.
He plays a constitutional role in international trade, but over the decade he has written several laws that have given the president a new authority to impose tariffs by declaring urgent.
In this way, no one used that power. So far. Now Trump uses that power in unprecedented ways.
