
US-Canada Trade Tensions: Tariffs and Their Impact
Recently, US President Donald Trump's 25% tariff on goods coming from Mexico and Canada has increased the trade between the two countries trade relations This decision caused the trade wars to flare up again, and the Canadian government was quick to respond by taking countermeasures.
Trump's Tariff Practices
Trump, US-Mexico-Canada Trade Agreement Within the framework of the (USMCA), the Canadian government has imposed new tariffs on the grounds that neighboring countries are not taking measures against drug trafficking into the United States. However, the Canadian government states that less than 1% of the illegal substances entering the United States originate from Canada. This situation reveals how baseless Trump’s claims are.
Canada's Retaliatory Measures
In response to Trump's tariffs, Canadian government It has announced that it will impose a 155% tariff on $25 billion worth of US goods. This retaliation is an important step taken to protect Canada's economic interests. These tariffs, which will come into effect on February 18, are significant in terms of supporting workers and industries.
Tariff Applications and Their Impact on Consumers
Customs tariffs are generally importers This is paid by Canadian companies that want to import American-made products subject to the new tariffs, so they will have to pay 25% more for those products. This increased cost is, in most cases, passed on to the consumer, thus increasing consumer prices in Canada.
Negative Effects on the Automotive Industry
The automotive sector is one of the sectors that will be most affected by these new tariffs. Many automakers ship vehicle parts across borders, which means that cars face tariffs multiple times during the manufacturing process. Therefore, the significant increase in car prices will also negatively impact the adoption of electric vehicles in Canada.
Scope and Effects of Customs Duties
The first set of tariffs went into effect on February 4 and covers products such as fruit juice, whiskey, and apparel. The second set will go into effect on February 18 and target critical industries such as autos, steel, and aerospace products. This has the potential to have serious impacts on both the U.S. and Canadian economies.
Economic Balance and Future Scenarios
The implementation of customs duties not only shakes the economic balance between the two countries, but also creates uncertainty in international trade. Experts emphasize that this situation could harm both the Canadian and US economies. Reconsidering trade relations between the two countries and establishing a healthy dialogue environment is critical to resolving this crisis.
Conclusion: The Consequences of Trade Wars
The trade war between the US and Canada is likely to affect not only the two countries but also the global trading system. Tariff hikes can threaten the growth targets of economies by increasing labor costs and consumer prices. Therefore, it would be in the interest of both countries to end these tensions as soon as possible.