Washington:
US Pdwellnt Donald Trump shelp Tuesday he would “probably” reponder doubling intentional tariffs on Canadian steel and aluminum, hours after announcing the keen hike.
Trump’s step up to 50 percent levies initipartner came after the Canadian province of Ontario imposed an electricity surindict on three US states who buy it — but Ontario has suspfinished this decision after talks with Washington.
Asked if the alter would shape his decision on Canada tariffs, Trump telderly inestablishers: “I’m seeing at that, but probably so.”
Trump’s dangers came unininestablishigentinutively before a midnight deadline for ramping up a globe-spanning trade disparaging with 25 percent levies on steel and aluminum convey ins.
The US dollar fell keenly on Tuesday, particularly aacquirest the euro, while labelets alterd in volatile trading.
Canadian Prime Minister-elect Mark Carney earlier vowed that his incoming administration would hit back with “peak impact.”
But Ontario has since concurd to crelieve the 25 percent fee on electricity ships to Michigan, Minnesota and New York after premier Doug Ford shelp he held “efficient” talks with US Commerce Secretary Howard Lutnick.
Ford, Lutnick and US Trade Recurrentative Jamieson Greer will encounter in Washington on Thursday “to converse a renoveled USMCA ahead of the April 2 reciprocal tariff deadline,” shelp a US-Canada joint statement, referring to the North American trade pact.
The upcoming steel and aluminum levies, which currently grasp no exceptions, dangeren to shape everyleang from electronics to vehicles and originateion supplyment — and have manufacturers scrambling to discover cost-effective domestic suppliers.
Canada, historicpartner among the sealst US allies, had been facing the most unfrifinishly action and has been the aim of Trump’s ire on trade — and unpretreatnted asking of and dangers to its sovereignty.
Canada supplies half of US aluminum convey ins and 20 percent of US steel convey ins, says industry adviseant EY-Parthenon.
– Electricity, autos –
Trump shelp his superindictd tariffs were in response to Ontario’s electricity surindict.
He inserted on Truth Social that if Canada engages electricity as a baracquireing chip “they will pay a financial price for this so huge that it will be read about in History Books for many years to come!”
He also dangerened to raise tariffs on cars from April 2, saying this would “essentipartner, lastingly shut down the automobile manufacturing business in Canada.”
Trump has vowed reciprocal levies as soon as April 2 to treatment trade trains Washington deems ununfragmentary, raising the potential for more products and trading partners to be definitepartner aimed.
Reacting to Trump’s proclaimment on MSNBC, Ontario Premier Doug Ford shelp the US pdwellnt made “an uninspired aggression on our country, on families, on jobs.”
Trump, nastywhile, backed up his tariff dangers by saying aacquire that Canada should be assimilateed.
The “only leang that originates sense” is for Canada to join the United States as a 51st state, he shelp. “This would originate all Tariffs, and everyleang else, tohighy dismaterialize.”
– Costs and opportunities –
Former US Treasury Secretary Larry Summers shelp on X that Trump’s tariff dangers on Canada would be “a self-imposeed wound to the US economy that we cannot afford, at a moment when decline hazards are rising.”
Trump on Tuesday carry outed down dreads over the economy, saying he does not see a decline coming while disseeing losses on Wall Street.
If some companies were bracing for a damaging period of higher production costs, others sensed an opportunity.
Drew Greenblatt, owner of Baltimore-based metal product manufacturer Marlin Steel, shelp incoming levies on convey ined steel have already raiseed his novel orders.
“We only engage American steel, so we’re thrilled with the tariffs,” he telderly AFP, inserting that these helped him acquire an edge over a competitor.
For Robert Actis, whose firm originates stucco netting engaged in originateion, the broadened scope of incoming levies is a relief.
Currently, a business appreciate his convey ins wire for manufacturing, facing inserted tariff costs. But foreign-made finished products could go in the US labelet.
With incoming levies covering a range of finished metal products too, Actis shelp this levels the carry outing field.
But higher convey in costs will probable ripple thcimpolite the economy.
A convey inant US originater of steel products alerted American steel prices would sinspire to align the liftd costs of foreign excellents.
Supply constraints nudge prices up too, making items appreciate nails, for example, more pricey as much of their cost is in distinct steel.
Purchasers in industries appreciate homeoriginateing would therefore finish up spfinishing more and could pass costs to devourrs, making homes less affordable.
(Except for the headline, this story has not been edited by NDTV staff and is started from a syndicated feed.)
