Trump Trade Adviser Navarro: No 50% steel and aluminum tariffs on Canada tomorrow.

Trump Trade Adviser Navarro: No 50% steel and aluminum tariffs on Canada tomorrow.

The ongoing trade spat between the United States and Canada took another unexpected turn on Tuesday when President Donald Trump's trade advisor, Peter Navarro, announced that there would be no 50% tariffs imposed on Canadian steel and aluminum imports [1]. This announcement came after Ontario Premier Doug Ford agreed to remove a 25% surcharge on electricity exports to the US, which was implemented in response to Trump's earlier tariff threats.

The threat of a 50% tariff on Canadian imports had sent shockwaves through the financial markets, with the Dow Jones Industrial Average experiencing a brutal selloff on Monday [1]. The uncertainty surrounding the trade war between the two countries had also raised concerns about the potential impact on the global economy.

Navarro's announcement marked a significant shift in the administration's stance on tariffs, which Trump had repeatedly touted during his 2024 campaign as a valuable negotiating tool. The president had argued that tariffs would help protect American jobs and reduce the US trade deficit [1].

However, the imposition of tariffs on Canada, one of the US's closest allies, had sparked criticism from both sides of the aisle. Many had argued that tariffs would not only harm American businesses but would also damage the relationship between the two countries [1].

Navarro's decision to walk back the threat of tariffs is likely to be welcomed by both the US and Canadian governments. However, it remains to be seen whether this is a permanent solution to the trade dispute or simply a temporary reprieve [1].

References:

[1] Associated Press. Trump doubles planned tariffs on Canadian steel and aluminum to 50% as trade war. 12 April 2023. https://apnews.com/article/trump-economy-tariffs-stock-musk-business-8a5f28d9bb16e0b8a924d99ead0907fa