US President Donald Trump is dealing with another introductory blow to Canada, where it signed an executive order on Wednesday that will collide with all non -made cars with excessive fees for import.
Trump said the United States will implement a 25 percent tariff to these imports, but it is not clear when it will be applied.
The president said that the car tariff would start on April 2, but he suggested that they start with a basic rate of 2.5 percent.
“What we will do is a 25 percent tariff for all cars that were not made in the United States. If they are made in the United States, there is no tariff at all. We will start with a 2.5 percent rule, which we were, and we will go to 25 percent,” Trump told reporters at the Oval Office.
The cars are the second largest Canadian export after oil-and to a large degree of the most profitable manufactured product that Canada sells to the world, linked to hundreds of thousands of Canadian jobs.
This makes these customs duties more important than any other commercial threats from Trump, including 10 percent tax on energy and tariffs of 25 percent on steel and aluminum.
Flavio Volby, head of the Automobile Spare Spare Parties Association, said it created the paralyzed uncertainty – not only in Canada.
He told CBC News that the threat of a continuous, advanced tariff always frightens investors in the United States.
“(Trump) will move the sticks twice a day,” he said on Wednesday while waiting for the announcement. “You don’t know what to expect when you wake up in the morning.”
Speaking before the announcement, Volpe expected a 25 percent tariff, but with some exemptions, perhaps on North America parts circulated under the bases in the deal concluded by Trump himself, the Agreement of the State and Mexicans in Canada.
Canada, in fact, a rare business partner for the United States unlike the rest of the world, it already buys more cars and spare parts from the United States more than it sells.
The Trump administration produced a report on a car tariff, and it barely remembered Canada. It has shown that the share of Canada’s car production in North America has been relatively stable since the 1980s, and that the real shift was from American production to Mexico.
But this second Trump administration adopts and threatens commercial protectionism, hoping to direct production to the United States
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