The New Tariffs Wars Begin
ICMS, Inc. Reports
Commentary by Tom Okure, Ph.D
As President Trump unleashed unprecedented Tariffs on its neighbors, Canada and Mexico, both countries vowed to retaliate. Canadian President Trudeau immediately responded to Trump’s tariff announcement by announcing his 25 percent proportional tariffs totaling C$155 billion on its US neighbor beginning a first-time Tariff War between the two allies.
The Canadian C$155 billion tariffs take effect on the same day the US tariffs take effect on Tuesday. In his closing remarks announcing the tariffs and financial hurt it will impose on both Canada and the US economies, Trudeau flanked by his foreign affairs and finance ministers noted in a somber mode, the years of good bilateral relations between the two neighbors. He stated:
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Trudeau and foreign affairs and finance ministers. Picture Credit: Reuters |
"From the beaches of Normandy to the mountains of the Korean Peninsula, from the fields of Flanders to the streets of Kandahar, we have fought and died alongside you during your darkest hours," he said. "We've built the most successful economic, military and security partnership the world has ever seen."
Trudeau encouraged Canadians to buy Canadian products and vacation at home rather than in the U.S. "We didn't ask for this but we will not back down," he said.
Mexico also vows to retaliate against President Trump's 25 percent tariffs against Mexican exports to the US. Now that Canada has retaliated against its long-time ally, the world awaits to see what the Mexican neighbors will do next. So far, China appears to have a wait-and-see approach to see what US two neighbors are doing before it retaliates against the 10 percent trade tariff President Trump has proposed on Chinese goods. This 10 percent will be in addition to the existing tariffs Trump imposed on China during his first term. Indeed, a new world trade tariff war may have started.
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All rights reserved by Tom Okure, Ph.D. CEO of Inter-Continental Mgt. Systems, Inc. (or ICMS Inc.). ICMS, Inc., is a multifaceted business and management consulting firm with its head office in Albany, New York