Following Trump’s announcement of 25% tariff hike, loonie fell to the lowest level since May 2020
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“Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price,” he said.
“We obviously talked about laying out the facts, (talked) about how the intense and effective connections between our two countries flow back and forth. We talked about some of the challenges that we can work on together,” per NP.
As the discussion surrounding tariffs continues, here’s more about what they are and what Trump’s announcement could mean for Canadians.
What are tariffs and does Canada have them?
Tariffs are “customs duties on merchandise imports,” according to the World Trade Organization (WTO), a global international organization dealing with the rules of trade between nations.
“Tariffs give a price advantage to locally-produced goods over similar goods which are imported, and they raise revenues for governments,” per WTO.
There can be tariffs on animals, plants or other goods.
Yes, Canada does have tariffs.
Which Canadian sectors could be most impacted by Trump’s tariff hike?
Canada and Mexico account for almost 30 per cent of U.S. trade volume, Newsweek reported. The 25 per cent tariff would not only be detrimental for Canadians, but also for Americans, by increasing the cost of products. The tariff could add around $1,000 to $5,000 to the price of a new car, analysts told the publication.
“We’ve learned previously that retaliation is inevitable, and countermeasures can target sensitive industries, exacerbating the economic impact and creating uncertainty for businesses. The only way for Canada and the United States to move forward is through dialogue within the framework of the USMCA that President Trump and Prime Minister Trudeau negotiated and signed into force.”
‘We need a Team Canada approach’: How Canadian leaders reacted
Ontario Premier Doug Ford posted on social media that a 25 per cent tariff would be devastating to workers and jobs in both Canada and the U.S.
“The federal government needs to take the situation at our border seriously. We need a Team Canada approach and response—and we need it now,” Ford posted on X last night. “Prime Minister Trudeau must call an urgent meeting with all premiers.”
“Canadians must stand united. Ottawa must respond with strength,” Eby tweeted.
Alberta Premier Danielle Smith said in a social media post that the Trump administration has “valid concerns related to illegal activities” at the border.
But she noted vast majority of her province’s energy exports to the U.S. are “delivered through secure and safe pipelines” which she said “do not in any way contribute to these illegal activities.”
With additional reporting by the Canadian Press
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