CNN
—
A day after providing Canada a one-month reprieve on punishing almost across-the-board 25% tariffs, President Donald Trump has threatened new tariffs as quickly as Friday on Canadian lumber and dairy merchandise.
“Canada has been ripping us off for years on lumber and on dairy merchandise,” Trump stated in an Oval Workplace deal with Friday, citing Canada’s roughly 250% tariff on US dairy exports to the nation. Trump stated America would match these tariffs dollar-for-dollar.
“We might do it as early as at the moment, or we’ll wait till Monday or Tuesday,” Trump stated. “We’re going to cost the identical factor. It’s not truthful. It by no means has been truthful, they usually’ve handled our farmers badly.”
Shares, which have been decrease to start out the day after a blended bag of a jobs report, initially fell after Trump’s tariff risk however pared their losses. The Dow was up about 45 factors, or 0.1%. The broader S&P 500 fell 0.1%, and the tech-heavy Nasdaq was down one other 0.1% after falling into correction territory Thursday — a ten% decline from its most up-to-date excessive.
Trump’s announcement gave buyers, companies and shoppers one other robust dose of whiplash. Simply in the future earlier, on Thursday, Trump introduced a one-month pause on all tariffs on Canada and Mexico on merchandise that adjust to the US-Mexico-Canada free commerce treaty, referred to as the USMCA. That had given many industries, particularly autos and agriculture, a significant sigh of aid.
Canada prices exorbitant tariffs on sure dairy merchandise, together with a 241% tariff on milk, a lot to the consternation of America’s dairy farmers. In 2023, a commerce dispute panel dominated in favor of Canada, arguing that the excessive import taxes didn’t violate the USMCA.
Wisconsin Democratic Senator Tammy Baldwin lambasted the choice, arguing it was creating an undue burden on her state’s dairy trade.
“Wisconsin dairy farmers work laborious daily to convey world class merchandise to market, they usually deserve a degree taking part in area with their international rivals,” Baldwin stated within the wake of the November 2023 determination. “This determination flies within the face of the settlement our nation made with Canada and places our Made in Wisconsin dairy merchandise at a drawback.”
Trump has been criticizing Canadian tariffs on US lumber for a number of weeks, claiming America ought to reply in variety. He has claimed America can do with out Canadian lumber.
An govt order Trump signed Saturday stated America has an “abundance of timber sources which are greater than satisfactory to fulfill our home timber manufacturing wants.” It’s not fairly that easy, trade specialists argue: They warn tariffs might find yourself growing lumber and constructing prices — and even push up housing costs for shoppers.
This can be a creating story and can be up to date.
