Another week, and another round of tariff threats and annexation suggestions from President Trump.
It began with the announcement of a policy imposing 25 percent tariffs on all steel and aluminum imports. In Canada’s case, those tariffs would be stacked on top of the previously introduced 25 percent tariffs on most Canadian exports, which are in a 30-day holding period. If Mr. Trump follows through on both, the rate on steel and aluminum will be a staggering 50 percent.
[Read: Nations Denounce Trump Tariff on Metals and Warn of Retaliation]
Next up, the president told his advisers to come up with new tariffs that take into account trade barriers and other economic approaches by U.S. trading partners that his administration deems unfair. It’s a sweeping approach that includes not just tariffs that other countries place on U.S. goods but taxes they charge on imported products, such as the G.S.T. in Canada; any subsidies they give industries; and their exchange rates.
“Canada’s been very bad to us on trade, but now Canada is going to have to start paying up,” Mr. Trump said while making the announcement. “Canada is going to be a very interesting situation because, you know, we just don’t need their product.”
Among the things that may be targeted, according to a fact sheet released by the White House, is the 3 percent tax Canada began applying last year to the Canadian revenues of large tech companies like Google, Amazon and Netflix. Again, any tariffs that emerge from this review will be added onto whatever else Mr. Trump has already threatened to impose on Canadian exports.
[Read: Trump Says He’ll Rework Global Trading Relations With ‘Reciprocal’ Tariffs]
A small number of U.S. business leaders have started to speak out against Mr. Trump’s tariff plans, if not directly speaking up for Canada.
