Citing two federal commercial advisors, The Globe and Mail reported early on Wednesday that “Ottawa will not impose taxes on most American foods and components that could increase the cost for families or cause mass layoffs or plant closures.”
These comments follow the Wall Street Journal (WSJ) report on Sunday indicating that the White House is considering imposing global tariffs of up to 20% to almost all US commercial partners. UU.
The president of the United States, Donald Trump, is ready to announce global country tariffs by country in the Rosas de la Casas White Garden at 19 GMT on Wednesday.
Market reaction
At the time of writing, the USD/CAD is pressed about 0.4300, since the Canadian dollar (CAD) obtains some strength of the previous comments.
FAQS tariffs
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
