Last week, President Donald Trump launched 25% prices on future goods
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- For those we missed the recent news, there is a new trade war between the United States and Canada.
- During the weekend, Canada announced a new price package of $ 155 billion on countless articles from the United States.
- Vehicles made in the United States are a major objective of the new price and could make things very difficult for certain car manufacturers in America.
Last week, President Donald Trump launched 25% of prices on goods from Mexico and Canada in the United States. The Government of Canada now responds with its own 25% prices against many things, including cars, trucks and SUVs. Some prices start tomorrow, February 4, while others will start in about three weeks unless something changes.
Trump actually signed the current trade agreement between the United States, Canada and Mexico in its first mandate. Now he claims that these new prices are the result of the lack of action of borderline nations against drug trafficking in the United States. According to Canada, however, “less than 1% of fentanyl and illegal passages in the United States come from Canada”.
Read: China, Canada and Mexico are struck by Trump prices, triggering a new trade war
Following Trump’s movements, the Canadian government retaliated. He published the following statement on Sunday. “Canada will not resist because the United States will impose unjustified and unreasonable prices on Canadian products. In response, we are going ahead with prices of 25% out of $ 155 billion in imported American products. We will protect Canadian interests and support our workers and industries. »»
Part of this protection against Canada is in the form of a price on production vehicles from February 18. It is important to emphasize that importers, not exporters, paid prices. Thus, in this case, Canadian companies wishing to import American manufacturing products covered by the new price will pay 25% more for them. In many cases, the entity that has paid the price then transmits the cost of this rate to the consumer.
The impact it could have on car manufacturers themselves is gigantic. Many of them move parts through the border before the car itself exceeds the production line. In a sense, cars made in this way could face prices several times. This will almost certainly slow down the adoption of electric vehicles in Canada, as prices will probably increase a lot in the automotive industry.
Again, the first set of prices comes into force on February 4 and it includes articles such as juice, whiskey, clothes and motorcycles. The second set comes into force on February 18 and includes cars, steel, aerospace products, etc.
