Commerce Secretary Lutnick says he seeks to “lower the temperature” between the U.S. and Canada. I have a suggestion.
“Nothing Will Stop Metals Tariffs”
Reuters reports US Commerce Chief Says Nothing Will Stop Metals Tariffs, Will Add Copper Protections
U.S. Commerce Secretary Howard Lutnick said nothing would stop President Donald Trump’s expanded 25% tariffs on steel and aluminum until U.S. domestic production is strengthened, and that Trump will add copper to his trade protections.
Lutnick also told Fox Business Network that a meeting that he plans to hold with Ontario Premier Doug Ford will seek to “lower the temperature” between the U.S. and Canada, but he will wait for Mark Carney to be fully installed as Canadian prime minister to negotiate on trade on a national level.
EU, Canada Retaliate
Yesterday, the clueless bragged Canada bowed down. Today, reality sets in.
Please note Trump Threatens Further Tariffs as EU, Canada Retaliate for Those Already in Place.
Donald Trump threatened on Wednesday to escalate a global trade war with further tariffs on European Union goods, as major U.S. trading partners said they would retaliate for trade barriers already erected by the U.S. president.
Just hours after Trump’s 25% duties on all U.S. steel and aluminum imports took effect, Trump said he would impose additional penalties if the EU follows through with its plan to enact counter tariffs on some U.S. goods next month. “Whatever they charge us, we’re charging them,” Trump told reporters at the White House.
Canada, the biggest foreign supplier of steel and aluminum to the United States, announced 25% retaliatory tariffs on those metals along with computers, sports equipment and other products worth $20 billion in total. Canada has already imposed tariffs worth a similar amount on U.S. goods in response to broader tariffs by Trump.
“We will not stand idly by while our iconic steel and aluminum industries are being unfairly targeted,” Canada’s Finance Minister Dominic LeBlanc said.
EU Less Exposed
The 27 countries of the European Union are less exposed, as only a “small fraction” of targeted products are exported to the United States, according to Germany’s Kiel Institute.
The EU’s counter-measures, due to take effect next month, would target up to $28 billion worth of U.S. goods like dental floss, diamonds, bathrobes and bourbon – which likewise account for a small portion of the giant EU-U.S. commercial relationship. Still, the liquor industry warned they would be “devastating” on its sector.
At the White House, Trump said he would “of course” respond with further tariffs if the EU followed through on its plan. With Irish Prime Minister Micheal Martin at his side, Trump criticized the EU member country for luring away U.S. pharmaceutical companies.
China’s foreign ministry said Beijing would safeguard its interests, while Japan’s Chief Cabinet Secretary Yoshimasa Hayashi said the move could have a major impact on U.S.-Japan economic ties.
“We are in a trade war and when a trade war begins, it tends to sustain itself and feed itself,” Airbus CEO Guillaume Faury said on French television.
Frayed Relations With Canada
The escalation of the U.S.-Canada trade war occurred as Prime Minister Justin Trudeau prepares to hand over power to his successor Mark Carney, who won the leadership race of the ruling Liberals last weekend.
“I’m ready to sit down with President Trump at the appropriate time, under a position where there’s respect for Canadian sovereignty and we’re working for a common approach,” Carney said while touring a steel plant in Ontario.
Other Canadian officials are due to meet with U.S. officials in Washington on Thursday.The U.S. national anthem has been booed at hockey games and some stores removed U.S. products from their shelves, even before the duties took effect. Travelers are steering clear of the United States, with bookings down 20% from a year ago.
Canadian Energy Minister Jonathan Wilkinson told Reuters that Canada could impose non-tariff measures such as restricting oil exports to the U.S. or levying export duties on minerals if U.S. tariffs persist.
Conflicting Agenda
- Lutnick said nothing would stop President Donald Trump’s expanded 25% tariffs on steel and aluminum.
- Lutnick seeks to “lower the temperature” between the U.S. and Canada, but he will wait for Mark Carney to be fully installed as Canadian prime minister.
- Carney says “I’m ready to sit down with President Trump at the appropriate time, under a position where there’s respect for Canadian sovereignty and we’re working for a common approach.”
- Canadian Energy Minister said Canada could impose non-tariff measures such as restricting oil exports to the U.S. or levying export duties on minerals if U.S. tariffs persist.
One of those items does not fit. Can you figure it out?
Mish Suggestion
Dear Mr. Lutnick, stop being a dense idiot. You can’t lower trade tensions by putting tariffs on the world and threatening everybody.
As one reader noted, the easiest way to stop being a dense idiot is to honor the “greatest trade deal in history” personally negotiated by Trump.
Moreover, I advise Lutnick to review trade math to see just how silly he sounds with his statement “We’re going to make the External Revenue Service replace the Internal Revenue Service.”
For discussion, please see Lutnick Says Tariffs Can Eliminate the IRS and Balance the Budget
To do what Lutnick suggests, we would need to faithfully collect 200 percent tariffs on everything, with of no trade frictions, no retaliations, full compliance, and no cutback in imports.
Actually, it’s even more ridiculous due to conflicting goals. Click on the link for details.
Also note Trump’s Tariffs Will Increase the Cost of a Pickup Truck by $8,000.
We define that as “winning”.
Finally, please note Cheese Was a “Key Achievement” of Trump’s USMCA Trade Agreement
Trump is complaining about Canada’s cheese tariffs. In 2018, he was bragging about cheese.