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President Trump cut off trade talks with Canada and announced forthcoming new tariffs on Canadian goodsโto be formally communicated via letters within the next week.
He also signaled a broader policy of blanket 10% tariffs, established under an April national emergency order via IEEPA, with the capacity to levy higher, country-specific reciprocal tariffs.
Trump emphasized that the U.S. will no longer tolerate โunfair trade dealsโ and is now pushing for reciprocal tariffs, possibly up to 25% or more for certain countries.
๐๐จ๐ฅ๐ข๐๐ฒ ๐๐๐๐ค๐ ๐ซ๐จ๐ฎ๐ง๐ & ๐๐ญ๐ซ๐๐ญ๐๐ ๐ฒ
The 10% universal baseline tariff, instituted April 5 under emergency powers, serves as a foundation for potential higher retaliatory tariffs based on a nation's trade behavior.
Steel and aluminum tariffs surged from 25% to 50% under Section 232, reaffirming industrial protectionism .
Additional tariffs remain threatened or under review on sectors like autos, electronics, airlines, and rare minerals, signaling a wave of future escalations .
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Todayโs key signal: Trump is escalating his tariff agendaโexpanding Sectionโฏ232 in June and now targeting Canada with further duties. The blanket 10% tariff, steel/aluminum at 50%, and potential future country-specific hikes suggest a commitment to aggressive trade policy.
Reporter's insight: Markets should watch incoming letters to Canada and upcoming tariff rate announcements. Economists are divided: some see long-term benefits to U.S. production, others warn of consumer price shocks and retaliatory responses.
