Global trade storm escalates! US imposes heavy tariffs on China, Canada responds to US car tariffs
After China refused to make concessions, US President Trump followed through on last week's threat and announced an additional 50% tariff on Chinese goods, bringing the total tax rate to 104%.
Last week, Trump announced wide-ranging tariff measures against China, triggering countermeasures from China. China immediately imposed retaliatory tariffs of 34% on American products. On Monday, Trump further escalated the situation by stating that if China does not change its stance by noon on Tuesday, he will impose an additional 50% tariff. The tariff will officially take effect at midnight on Tuesday.
As countries around the world are working hard to deal with the chain reaction caused by Trump's tariffs, China has made it clear that it will not back down. The Chinese Ministry of Commerce issued a statement on Tuesday, stating that it "firmly opposes" Trump's threat of a 50% tariff and warning that if the US insists on pushing forward, China will "resolutely take countermeasures".
The statement pointed out that "the threat of the United States increasing tariffs on China is wrong on top of wrong" and "China will fight to the end"
White House spokesperson Karoline Leavitt said at a press conference on Tuesday that she had communicated with Trump before the conference and the president believed that "China must reach an agreement with the United States.
She added, "He believes that China's retaliation is wrong. When the United States is attacked, the president will retaliate even harder. That's why a 104% tariff will be imposed on China at midnight tonight
"The President asked me to convey that if China is willing to reach an agreement, he will be very tolerant, but he will always put the interests of the American people first."
When asked if this means that China must proactively call to initiate negotiations, Levitt emphasized again, "China wants to negotiate - but they don't know how to start
Canada's anti car tariffs take effect on Wednesday
The Canadian federal government announced that it will impose retaliatory tariffs on cars imported from the United States starting from this Wednesday, marking a further escalation of the trade war between Canada and the United States, which could lead to a price increase of up to 25% for American made cars in Canada.
The Canadian Ministry of Finance stated that countermeasures against US assembled vehicles will take effect at 12:01 am Eastern Time on April 9th. Previously, US President Trump announced tariffs on foreign made cars, including Canada, and Canada promised to respond, but it was not until Tuesday of this week that the implementation time was officially announced.
Finance Minister Fran ç ois Philippe Champagne said in a statement, "Canada will continue to respond strongly to the unreasonable tariffs imposed by the United States on Canada. The federal government is firmly committed to seeking the United States to lift tariffs as soon as possible and protect Canadian workers, businesses, economy, and industries
Flavio Volpe, President of the Auto Parts Manufacturers Association of Canada, pointed out that up to 60% of the new cars purchased by Canada each year are imported from the United States. He also stated that Canada is the largest export market for American car manufacturers.
According to the new policy, Canada will impose a 25% tariff on the following two types of vehicles imported from the United States:
The parts of the vehicle that do not comply with the rules of origin of the United States Mexico Canada Agreement (USMCA), that is, the parts that do not come from Canada or Mexico;
The manufacturing process of the entire car itself does not comply with USMCA regulations for American made cars.
The Treasury Department emphasized in a statement that "these countermeasures will remain in effect until the United States lifts its unreasonable tariffs on the Canadian automotive industry
Source link:
https://www.theglobeandmail.com/world/article-trump-to-impose-additional-50-tariff-on-china/
https://www.theglobeandmail.com/politics/article-canada-to-impose-25-per-cent-tariffs-on-us-made-vehicles-wednesday/