Trump: « I will close the car industry in Canada. » Increases to 50% duties on steel and aluminum, then the baiston

Donald Trump on duties continues to change his mind (even within a few hours), feeding the uncertainty of the markets. Only this morning he had renewed the threats to Canada, announcing the doubling of the duties on steel and aluminum from 25% to 50% as retaliation for the imposition by the Province of Ontario of a 25% superete on exports electricity in several American states. At first, the premier of the Ontario Doug Ford He had declared that he wanted to keep the countermeasure on US energy in force, announcing that his province would « continue to fight » until « the threat of duties is definitively removed ». Thanks to the phone call between Ford and the secretary of the United States Commerce Howard Lutnick, however, in the afternoon Ontario made it known that he had suspended the duties on American energy. In return, Trump is said ready to make back again, saying that « probably » will cancel the additional duties he announced at the beginning of the day.

The war of duties

The war of Trumpian duties is started, at least officially, on March 4th last, when the President of the United States in front of the congress announced the decision to increase taxes against Canada, Mexico and Chinathe three countries with the most consistent exchange with the United States. Beijing had immediately reiterated that he was ready for the commercial war and the Canadian premier, Justin Trudeau, who would not have withdrawn his counter-to-date unless Washington was decided to totally remove his. The markets, as we know, immediately turned, but also the Americans (including many of those who voted The Donald) are now worried. Trump, then, had Temporegato, suspending the rates on goods and services compliant with the United States-Messic-Canada (USMCA) agreement until 2 April, including cars imports from Canada and Mexico. But today, March 11, he returned to charge and once again, on the Russian mountains, he threatened and then portrayed.

One morning started with threats …

«I gave (these, editor's note) Instructions to my secretary to trade « , the president wrote on Truth at the beginning of the day, » as a response to the fact that Ontario imposed a 25% rate on incoming electricity in the United States « , as well as threatening to cut electricity in New York, Minnesota and Michigan. The new policy « will enter in force tomorrow morningMarch 12, « said Perentorsio, sending Wall Street in red, which then recovered, and the European bags that instead closed negative.

Canadian automotive production also in the sights

Also on Truth, Trump then threatened to « substantially » increase the tariffs on cars that enter the United States « which, in essence, It will definitively close the car production activity in Canada. Those cars can be easily produced in the United States!»Wrote the Tycoon. It will be as he says, but in the meantime US buyers are anticipating the purchase of cars precisely in anticipation of the increase in prices. According to Reuters, at this moment, the duties are not influencing the lots of dealers, who on average have a three -month supply of vehicles. In fact, many car manufacturers have already obtained two derogations from the rates since Trump said they would come into force in early February. But uncertainty prompted people to react.

The escalation during the day and reverse

Trump also asked the Canada to « withdraw immediately » an « anti -American agricultural rate » on some US dairy products, warning that « will shortly declare a national emergency on electricity within the threatened area ». In the distorted narrative of Trump, « this will allow the United States to quickly do what must be done to alleviate this abusive threat from Canada ». In the midst of the escalation against Canada, Trump reiterated his initial plan on Truth: « The only sensible thing for Canada is to become the 51st American state. » In short, threatens the tycoon, if you do not want to be destroyed economically, dear Canadian, you just have to give up independence and submit totally to the domain of the United States: « Your brilliant hymn will continue to play », he writes with the usual bombastic Trump tones, « but will represent a great and powerful state within the largest nation that the world has ever seen! ».
Then, at the end of the day, everything returned. Pleasant, until tomorrow …