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Business Standard
5 hours ago
- Business
- Business Standard
Canada may hike tariffs on US steel, aluminium based on trade talks: Carney
Canada's Prime Minister Mark Carney said on Thursday he will impose new tariffs on US steel and aluminum imports on July 21 depending the progress of trade talks with US President Donald Trump. Carney, who met with Trump at the Group of Seven meetings in Alberta this week, reiterated Thursday that Canada and the US "agreed to pursue negotiations toward a deal within the coming 30 days". We will review our response as the negotiations progress, Carney said. He added: "In parallel, we must reinforce our strength at home and safeguard Canadian workers and businesses from the unjust US tariffs. That's why today we are announcing Canada will be introducing a series of countermeasures to protect Canadian steel and aluminum workers and producers. "First, Canada will adjust its existing counter-tariffs on US steel and aluminum products on July 21 to levels consistent with progress made in the broader trading agreement with the United States. Carney said Trump's trade war is running the risk of a global recession. The world is in the middle of a trade war and several wars, actual wars, including wars that can have quite significant implications for commodity prices and global growth, said Carney, who led the central banks of both Canada and the United Kingdom. Trump has imposed 50 per cent tariffs on steel and aluminum as well as 25 per cent tariffs on autos. Trump is also charging a 10 per cent tax on imports from most countries, though he could raise rates on July 9, after the 90-day negotiating period set by him would expire. Canada and Mexico face separate tariffs of as much as 25 per cent that Trump put into place under the auspices of stopping fentanyl smuggling, through some products are still protected under the 2020 US-Mexico-Canada Agreement signed during Trump's first term. Canada is the largest foreign supplier of steel, aluminum and uranium to the US and has 34 critical minerals and metals that the Pentagon is eager for. Nearly USD 3.6 billion Canadian dollars (USD 2.6 billion) worth of goods and services cross the border each day. Canada is the top export destination for 36 US states. We need to stabilise the trading relationship with the United States. We need to have ready access to US markets, Carney said. Trump announced with British Prime Minister Keir Starmer that they had signed a trade framework Monday that was previously announced in May. The trade framework included quotas to protect against some tariffs, but the 10 per cent baseline would largely remain as the Trump administration is banking on tariff revenues to help cover the cost of its income tax cuts. Carney didn't say if he would sign a deal with the US if any tariffs remain in place on Canada. This a negotiation, and it is better for the Americans, and of course for Canada, to have true free trade between our countries, particularly in the steel, aluminum and auto sectors, he said.
Time of India
a day ago
- Automotive
- Time of India
Americans may pay $2,000 more for each new car, thanks to Trump
Trump's plan of 'Making America Great Again' is likely to backfire and punish its own people and industry. His $30 billion worth auto tariffs are set to have a direct impact on car buyers, or plainly put, the Americans themselves will be bearing the brunt of it. As July approaches and with the tariffs taking effect, car prices are expected to shoot up by almost $2,000 per vehicle, driving up already high US auto prices, Bloomberg reported citing consultant AlixPartners. The firm estimates that automakers will pass along about 80 per cent of the tariff costs directly to customers, who will be paying around $1,760 more per car on average. As a result, US auto sales could drop by 1 million vehicles over the next three years. However, the firm expects a rebound to 17 million annual sales by 2030, a million more than last year, as tariff effects begin to ease. 'These tariffs bring a big wall of cost,' said Mark Wakefield, global auto market lead at AlixPartners, during an online briefing. 'We see consumers taking the majority of the hit.' Major US carmakers have already flagged the impact. General Motors expects a $5 billion hit from the tariffs this year, while Ford estimates $2.5 billion. Both companies say they plan to manage the blow, partly by adjusting prices. Live Events AlixPartners' forecast is less severe than others because it assumes tariffs will reduce over time as trade talks progress. The current 25 per cent tariff on imported cars may fall to 7.5 per cent on fully assembled vehicles and 5 per cent on parts, with even lower rates for vehicles that qualify under the US-Mexico-Canada Agreement (USMCA). 'This tariff wall is not likely to last forever,' Wakefield added. EV incentive Cuts may stall American auto innovation While tariffs may ease in the long term, a more lasting concern for the auto industry is the Trump administration's move to cut electric vehicle (EV) incentives. AlixPartners warned that scaling back support measures, such as the $7,500 consumer tax credit for EVs, will push buyers toward cheaper, gasoline-fueled vehicles. 'Car buyers will follow their pocketbook,' Wakefield said. As a result, the firm has sharply cut its forecast for US EV adoption. It now expects EVs to make up only 17 per cent of total vehicle sales in 2030, down significantly from an earlier projection of 31 per cent. Meanwhile, traditional internal combustion engine vehicles are expected to make up 50 per cent of the market, up from 33 per cent. Hybrid models are forecast to grow modestly to 27 per cent, while plug-in hybrids and extended-range EVs are expected to shrink to just 6 per cent, down from 10 per cent. For consumers, that could mean fewer affordable electric options and a deeper dependence on older, fuel-based technologies, just as the rest of the world moves ahead. The shift away from EVs could leave American automakers falling behind global competitors, especially as companies in China continue to lead in electric vehicle technology. 'It makes it much more likely that they end up licensing or joint venturing or otherwise using platforms and EV technologies from China,' Wakefield said. With fewer incentives and higher costs, the US risks becoming an outlier in clean transportation. 'They'll have the world's best V8 engines by 2028,' Wakefield added. 'They'll probably also have the world's only V8 engines by 2028.'
New York Post
11-06-2025
- Business
- New York Post
Bessent reveals whether Trump will extend tariff deadlines for other countries after breakthrough with China
The Trump administration is 'highly likely' to extend next month's deadline for countries to agree one-for-one trade deals — so long as they are engaged in 'good-faith negotiations,' Treasury Secretary Scott Bessent told lawmakers Wednesday. With a July 8 deadline looming for dozens of nations to strike lightning-quick agreements with the White House, Rep. Don Beyer (D-Va.) pressed Bessent about whether more time will be given. 'I would say, as I have repeatedly said, that there are 18 important trading partners,' Bessent told the tax-writing House Ways and Means Committee. 'It is highly likely that [with] those countries … or trading blocs in the case of the EU, who are negotiating in good faith, we will roll the day forward to continue good faith negotiations. If someone is not negotiating, then we will not.' Advertisement On April 2, which Trump dubbed 'Liberation Day,' he unveiled a 10% baseline tariff on virtually all imports flowing into the US and a myriad of customized rates on almost every country. 3 Treasury Secretary Scott Bessent hinted that an extension of the 'Liberation Day' tariff deadline is coming. AP 3 President Trump hasn't said whether he will extend his tariff deadlines. REUTERS Advertisement Seven days alter, Trump announced a 90-day pause on those customized rates to give time to negotiate deals. The White House has since claimed that last week was the deadline for countries to furnish their best offers on trade. Trump has also imposed a few other key trade deadlines, agreeing last month to delay a 50% planned tariff against the European Union until July 9 after it was set to take effect June 1. The administration has also reached an understanding on trade with the United Kingdom and earlier Wednesday, Trump confirmed progress with China on a 'deal' for a trade negotiation framework. Advertisement Should Trump and Chinese leader Xi Jinping approve the agreement, it will revive key elements of a trade truce with Beijing brokered in Geneva last month. That framework was intended to give the two economic giants until Aug. 10 to cut a more comprehensive trade arrangement. The Geneva arrangement saw China lower its tariffs on most US goods to 10% from 125%, and the US lower its duties down from as high as 145% after the two sides penalized each other in the aftermath of 'Liberation Day.' 3 President Trump quickly paused his 'Liberation Day' tariffs to allow time for negotiations. Advertisement Under the latest arrangement, China will face up to 55% tariffs on most exports, according to Trump. In addition to the 10% baseline rate and the tariffs on China, Trump has imposed a 25% rate on imports from Canada and Mexico that aren't subject to the US-Mexico-Canada Agreement, a 25% duty on foreign steel and aluminum imports, and another 25% levy on most foreign-made vehicles.
New York Post
10-06-2025
- Business
- New York Post
World Bank agrees with Trump's trade complaints, urges countries to lower tariffs on US
The World Bank on Tuesday agreed with President Trump's complaint that foreign countries engage in unfair trade practices with the US and urged the nations to ease their tariffs on American exports. Top economists at the international institution, which helps finance low and middle-income countries, acknowledged that many nations do not provide reciprocal trade access to the US. 'This [situation] could not be sustained indefinitely,' the World Bank's chief economist, Indermit Gill, said during a news briefing, the Washington Post reported. 3 President Trump has long groused that US trading partners engage in unfair practices. REUTERS Gill said the World Bank has had to sharply lower its global growth forecasts because of Trump's blizzard of tariffs to try to help right the situation and amid the ongoing uncertainty over global trade. But he contended that Trump's actions were merely a response to uneven trade access between other countries and the US. Other experts at the World Bank concurred with that assessment and indicated that Europe, Japan and China should all take steps to reduce trade barriers on the US, while calling for an across-the-board rollback on tariffs on all sides. 3 World Bank's chief economist, Indermit Gill, acknowledged Tuesday that several top US trade partners have had uneven trade practices. Bloomberg via Getty Images The World Bank's updated economic forecast downgraded growth expectations for the US in 2025 from its 2.3% projection in January down to 1.4%. If that prediction comes true, it will be the lowest annual growth rate in US gross domestic product since the Great Recession, not counting the COVID-19 pandemic. The institution's forecast for China meanwhile remained steady at 4.5%, while it said global growth will slow down 0.4 percentage points to 2.3%. But there's a risk of further decline, and global growth could plunge to 1.8% if trade issues persist, the World Bank warned. 3 Trump has been particularly keen on overhauling trade relations with China's president, Xi Jinping. POOL/AFP via Getty Images 'After a succession of adverse shocks in recent years, the global economy is facing another substantial headwind, with increased trade tension and heightened policy uncertainty,' the international financial institution wrote in its new forecast. 'Against the backdrop of a deteriorating global environment, growth forecasts for 2025 have been downgraded.' Trump has imposed a 10% baseline tariff rate on virtually every country, 30% duties on imports from China and Hong Kong. 30% duties on imports from China and Hong Kong, a 25% rate on imports from Canada and Mexico that aren't subject to the US-Mexico-Canada Agreement and 25% on foreign steel and aluminum. The Congressional Budget Office has estimated that if all those tariffs implemented by May 13 were left in place, it would generate about $2.8 trillion in revenue over a 10-year period. Trump has also given countries a deadline of July 8 to cut lightning trade arrangements or else face an onslaught of his customized 'Liberation Day' tariffs.
Mint
30-05-2025
- Business
- Mint
Northern US Mayors Call for End to ‘Irrational' Trade War With Canada
Mayors in states that border Canada are calling for an end to President Donald Trump's trade war with the country, saying it has harmed businesses and workers in their communities and upended one of the world's most successful economic relationships. Andrew Ginther, mayor of Columbus, Ohio, and Bryan Barnett, mayor of Rochester Hills, Michigan, said in an interview Friday that the countries should continue to build things together and trade with each other because the partnership has been working for decades. 'We don't think that growth and prosperity for American cities comes through a prolonged, unstable, irrational and emotionally charged trade war,' said Ginther, a Democrat who is also president of the US Conference of Mayors. 'Our metro economies are based on trade and being able to export what we produce in the United States.' The two mayors were in Ottawa for a meeting of the Federation of Canadian Municipalities, the counterpart to Ginther's group. The politicians said cooperation among Canadian, American and Mexican mayors has never been stronger and at a municipal level, leaders are broadly united against tariffs. Canada and Mexico were among the first countries targeted by Trump — he imposed levies on goods that don't comply with the US-Mexico-Canada Agreement, as well as sectoral duties on steel, aluminum and automobiles, prompting Canada to retaliate with levies of its own. Both mayors' communities are hubs for auto manufacturing, which sees parts zip back and forth across the Canada-US border as vehicles are assembled. Barnett, a Republican, said the interconnected sector has been effective in driving growth for all involved. 'We have two of the strongest economies in the world because we work together,' he said. 'We're a capitalistic society that has succeeded because innovative people find great ways to make important things. And they do that with partnerships, they do that with collaborations. I want to harness that. I don't want to block it.' There is value in the president's overall goal of repatriating jobs to the US, the mayors said, and there are industries where a domestic supply chain is essential, such as computer chips. But the uncertainty caused by the chaotic tariff rollout is damaging businesses' ability to make investment and hiring decisions, they said. A recent survey of businesses in Rochester Hills found that nearly 60% have ruled out capital investment in 2025, with 30% planning to lay people off this year, Barnett said. Given that the top issue in their communities — and the issue that helped elect the president — is the cost of living, the tariffs are a misguided policy, the mayors argued. 'The uncertainty is deadly,' Ginther said. 'The cost of living's probably tough enough when you have a job. When you lose that job, that's when you have families spiral into a real desperate place.' This article was generated from an automated news agency feed without modifications to text.
