Facing 25% U.S. tariffs on steel and aluminum, Canada now confronts the potential for 50-100% tariffs on Canadian-made cars, a move President Trump justified by claiming Canada “stole” the auto industry. This follows the removal of auto tariffs under the Auto Pact (1965) and NAFTA (1994), replaced by CUSMA in 2018. Trump’s action aims to bolster the U.S. steel and aluminum sectors, while Canadian officials are working to mitigate the damaging effects of these tariffs. The deeply integrated automotive sectors of both countries are at risk.
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Following two phone calls between Prime Minister Trudeau and President Trump, a 30-day reprieve on U.S. tariffs against Canadian goods was secured. This temporary ceasefire resulted from Canada’s commitment to enhance border security, including a $1.3 billion plan and the creation of a joint strike force to combat crime and money laundering. The agreement, however, is considered an initial step, with Trump indicating a desire for a comprehensive economic deal. Canada also committed to appointing a fentanyl “czar” and designating Mexican cartels as terrorist organizations.
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Liberal Party leadership frontrunner Mark Carney, former governor of the Bank of Canada and the Bank of England, vows to retaliate against President Trump’s 25% tariffs on Canadian imports with dollar-for-dollar counter-tariffs. Carney asserts Canada will not yield to bullying tactics and that the tariffs will negatively impact the US economy by damaging its reputation, hindering growth, and increasing inflation. This action marks the second time in less than a decade the US has disrupted a major trade agreement with Canada, following the renegotiation of NAFTA. The upcoming Canadian federal election, slated for October 2024, will be significantly impacted by this trade dispute.
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As a Texas-based truck driver, I have had a front-row seat to the shifting dynamics of trade between Mexico and the US. It’s been an interesting experience to witness firsthand how Mexico has overtaken China as the leading source of goods imported to the US.
In my line of work, I often shuttle trailers between Laredo, Texas, and Mexico’s manufacturing hubs. Over time, I’ve noticed a significant increase in the number of Mexican truck drivers picking up goods in Laredo, destined for their final destinations in the US. This trade activity in Laredo is a clear indication that Mexico’s economy is thriving.… Continue reading
John Q. Hosedrinker