The White House escalates trade tensions with Canada by imposing a series of new tariffs, placing bilateral relations at their greatest challenge in decades.
The imposition of new tariffs risks deeply changing the long-standing reliable trade relationship between the two countries, significantly impacting supply chains and consumer prices at the border.
MAIN CONTENT
The White House imposes a 35% tariff on Canadian exports to protect jobs and U.S. businesses.
U.S.-Canada trade relations face great risks after decades of sustainable cooperation.
The EU chooses negotiation, while Canada firmly opposes the new U.S. tax measures.
Why does the White House view Canada as a difficult partner in trade negotiations?
Information from White House Press Secretary Karoline Leavitt confirms that Canada is considered a complex trade partner as negotiations drag on without significant progress.
Ms. Leavitt emphasizes this difficulty as the United States pushes to impose new tariffs to protect jobs and domestic businesses. The long-standing bilateral relationship is facing a major challenge due to disagreements over tax policy.
What are the notable features of the new tariffs the United States applies to Canadian goods?
On August 1, the United States will officially impose a 35% tariff on Canadian exports, including automotive parts, agricultural products, wood, and aluminum.
This is part of the new trade strategy of the White House under President Donald Trump, which commentators and the business community assess as a surprising adjustment and a source of great concern. Besides Canada, many other countries such as Mexico or the European Union also face similar new tariffs.
"The imposition of tariffs is aimed at protecting American workers and industries, prioritizing national interests and not hesitating to make tough decisions to protect competitive positions."
Karoline Leavitt, White House Press Secretary, July 2023
How have other countries, especially the EU, reacted to U.S. tariffs?
In contrast to Canada's strong opposition, the European Union shows goodwill to negotiate and seeks ways to reduce tariff and non-tariff barriers.
European Commission President Ursula von der Leyen has yet to announce retaliatory measures, showing a commitment to maintaining dialogue. She stated that the EU is actively working to reach an agreement favorable to both sides.
"We prioritize negotiation solutions, emphasizing the importance of dialogue to avoid escalating trade tensions that harm the global economy."
Ursula von der Leyen, President of the European Commission, July 2023
How will the new tariffs affect the economy and consumers?
Economists warn that the new tariffs could drive up production costs and consumer prices, negatively impacting jobs in border areas with closely linked supply chains.
The sectors directly affected include automotive parts, agricultural products, wood, and aluminum – key areas driving exports. The severe impact could slow economic growth as the market is already under pressure from inflation and global instability.
What risks does U.S.-Canada trade relations face?
With a total bilateral value exceeding $762 billion last year, the United States is Canada's main export market, accounting for over 75% of exported goods.
A widespread tariff war will increase trade barriers, severely harming businesses and workers, and weaken the deep interdependence between the two economies.
How can Canada and the United States continue to dialogue on this issue?
The United States has stated that it has sent official letters notifying dozens of countries about the new tariffs to be applied, while also being ready to continue negotiations if the parties are willing.
However, the United States also asserts a tough stance, not abandoning protective measures for its domestic industry, creating a tense confrontational atmosphere at the negotiation table with Canada.
Comparison table of tariffs the United States imposes on major trading partners
New Tariff Partner (%) Implementation Date Main Products Canada 35 1/8/2023 Automobiles, agricultural products, wood, aluminum Mexico 30 July 2023 Various products European Union 30 July 2023 Industrial goods, metals Brazil 50 (copper alloy) Before 7/2023 Copper alloy
Frequently asked questions
How do the new tariffs from the United States affect the Canadian economy?
A 35% tariff will increase export costs, putting pressure on Canadian producers and consumers, particularly impacting the automotive, agriculture, and metal industries.
Can the United States change its tax policy with Canada in the future?
The White House declares readiness to negotiate but maintains a tough stance, only changing when clear benefits for U.S. workers and businesses are evident.
What is the EU doing to avoid trade conflict with the United States?
The EU chooses to negotiate, seeking to reduce tariff and non-tariff barriers, avoiding retaliatory measures to maintain a long-term partnership.
Which sectors in the United States will benefit from the new tariffs?
Workers and businesses in domestic manufacturing sectors, such as automobiles and metals, are expected to benefit from reduced competition from imported goods.
How might tariffs affect U.S. consumers?
Import prices may rise, increasing the cost of living, especially in areas near the border between the U.S. and Canada.
Source: https://tintucbitcoin.com/canada-doi-mat-ap-luc-tu-nha-trang/
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