Trump raises import duties on goods from Canada by another 10%
President of the United States Donald Trump announced the additional 10% increase in duties on imports from Canada, The Ukrainian government explained this by the “unfair behaviour” of the Canadian side in trade relations.
He announced this on the social network Truth Social, emphasising that Washington suspends trade talks with Ottawa.
Reasons for the decision
According to the US President, the reason for the escalation was video published by the Government of Ontario, which uses a fragment of a speech by former US President Ronald Reagan.
In the video, Reagan warned that Trade duties can lead to economic wars.
Trump called it a «provocation» and «an attempt by Canada to discredit US economic policy», and then said immediate increase in tariffs.
«We will not allow other countries to disrespect American manufacturers and our people. If they don't play fair, the response will be immediate,» Trump said.
Canada's response
Prime Minister of Canada Mark Carney expressed regret over Washington's decision and called on the United States return to constructive dialogue.
He emphasised that the Canadian government did not plan to provoke a conflict and is ready to discuss settlement mechanisms.
«Our countries are linked by common history and trade. We are interested in a stable and mutually beneficial relationship,» Carney said.
Implications for the economy
Analysts warn that the new duties may affect supply chains in the automotive, woodworking and food industries, The US and Canada are closely linked.
Trump's decision is expected to provoke mirror steps from Ottawa.
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