On April 2, 2024, Donald Trump announced new reciprocal tariffs, yet Canada and Mexico were exempted due to existing tariffs. These countries face pre-established duties that continue to affect their trade. Canada plans counter-measures to protect its workforce, while Trump’s overall tariff strategy impacts multiple nations, with China bearing the highest rates.
On April 2, 2024, President Donald Trump announced new reciprocal tariffs targeting numerous nations, describing extensive grievances against foreign countries for their perceived economic exploitation. However, Canada and Mexico were notably exempt from this wave of tariffs, leading to a sense of relief in both countries. Although exempt from the latest tariffs, they are still subject to previously established tariffs, including 25 percent on certain imports and additional levies on automotive products set to be enforced shortly thereafter.
The exclusion of Canada and Mexico stems from existing tariffs imposed by Trump earlier in the year, including 25 percent on imports related to fentanyl and a 10 percent duty on Canadian energy products. Notably, imports under the US-Mexico-Canada Agreement are also exempt from these recent tariffs. Canada and Mexico’s situation indicates they still face significant trade challenges, pressing them to respond to the ongoing trade landscape while navigating existing duties.
In response to the tariff announcements, Canadian Prime Minister Mark Carney declared that Canada intends to engage in counter-measures to protect its workforce. Meanwhile, Mexican President Claudia Sheinbaum is scheduled to provide an official response, signaling an active stance from both nations on the evolving trade dynamics.
Trump’s broader tariff strategy includes a tiered tariff system with various rates assigned to different countries. Notably, countries like India, the European Union, and Vietnam are facing higher tariffs, with China facing a substantial tariff rate of 34 percent, compounded by previous tariffs related to the fentanyl crisis. During his campaign, Trump pledged an aggressive tariff approach, emphasizing a focus on leveling the trade field as a central platform.
In summary, Canada and Mexico successfully avoided the new tariffs announced by President Trump on April 2, 2024, largely due to pre-existing tariffs and provisions under the US-Mexico-Canada Agreement. Despite this reprieve, they continue to grapple with tariffs already in place, prompting counter-strategies to protect their economies. The broader context of Trump’s tariffs reveals a contentious global trade environment, with significant implications for various countries, particularly China.
Original Source: www.hindustantimes.com
