Introduction to the Tariff Situation

The United States and Canada have a long history of trade, with Canada being one of the largest trading partners of the US. Recently, there have been tensions between the two countries regarding tariffs. According to PBS News, Trump had threatened to increase tariffs on Canadian goods by 10% if Canada did not pull down a critical ad sooner.

Impact of Tariffs on Canada

Canada’s economy has been hit hard by Trump’s tariffs, with more than three-quarters of Canadian exports going to the US. Nearly $3.6 billion Canadian ($2.7 billion US) worth of goods and services cross the border daily. Many Canadian products have been hit with a 35% tariff, while steel and aluminum face rates of 50%. Energy products have a lower rate of 10%, while the vast majority of goods are covered by the U.S.-Canada-Mexico Agreement, and are exempt from tariffs.

Reasons Behind the Tariff Increase

Trump negotiated the U.S.-Canada-Mexico Agreement in his first term, but has since soured on it. The trade agreement is slated for review, which may lead to changes in the tariff rates. A spokesperson for Canadian Prime Minister Mark Carney did not immediately respond to a request for comment.

Conclusion and Future Implications

In conclusion, the tariff situation between the US and Canada is complex and may have significant implications for both countries. It is essential to monitor the situation closely and be aware of any changes that may affect trade between the two nations.