Suffering from a case of tariff whiplash? Here’s what you need to know
The Trump administration announced a new suite of trade measures on dozens of countries Wednesday. And if the new rules have your head swimming, you’re not alone.
In short, Canada was spared the worst of it, but the current measures will still have massive implications for this country and the rest of the world.
Here are answers to some frequently asked tariff questions.
OK, so what happened yesterday?
U.S. President Donald Trump announced sweeping new tariffs on most of the world in front of a crowd gathered at the White House’s Rose Garden, for a day he’d been calling “Liberation Day” in the lead-up to the event.
The president said he would apply “a minimum baseline tariff of 10 per cent” on all goods coming into the U.S., which will go into effect on April 5. For countries that he says rip off the U.S. the most, that number climbs. Those “worst offender” tariffs come into play on April 9.
Representatives of U.S. President Donald Trump were making the rounds on Thursday morning, defending his global tariffs plan as stock indexes tumbled in response.
All of it was detailed on a large chart, broken down by country, which the president used to articulate his message to the crowd.
Canada and Mexico were both exempt from that 10 per cent figure, and any further tariffs.
Does that mean Canada is tariff free?
No — there are just no new ones.
Aluminum and steel going from Canada into the U.S. were already being tariffed at 25 per cent before today. Those tariffs will continue.
A 25 per cent tariff on all foreign made cars — including Canadian ones — also goes into effect today. This measure was one we saw coming, given the White House announced those details in late March.
Are there any exceptions?
Yes, because nothing can be simple in a trade war.
Goods that are compliant with the Canada-United States-Mexico Agreement (CUSMA) will see no tariffs, but those that are not will be taxed at 25 per cent. Non-CUSMA compliant energy and potash would see a lower 10 per cent tariff.
The White House also said importers who bring cars into the U.S. under CUSMA will be given the opportunity to certify their U.S. content. The 25 per cent tariff would then only apply to the parts of the car that are not American-made.
What about the rest of the world?
Broadly, Asia was hit hard by new tariffs. China got a 34 per cent rate, Vietnam will pay a 46 per cent rate, Thailand’s was 36 per cent and Cambodia’s was 49 per cent, to name a few.
Many Latin American countries — like Colombia, El Salvador and Argentina — are being taxed at 10 per cent.
The European Union also received a 20 per cent tariff rate on all goods.
Lesotho and Saint Pierre and Miquelon, a small group of French islands off the coast of Newfoundland, have the highest tariff rates at 50 per cent.
Why is Trump doing this?
Trump has called these “reciprocal…
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