- Tariff to be on 25% of all Canadian imports except 10% on energy products
- 25% tariffs on all Mexican products (no exemptions)
- Retaliation clause calls for further action, likely increased tariffs
- Tariffs on China to include 10% tariffs on all China exports to US on top of existing tariffs
- Refers to International Emergency Economic Powers Act (IEEPA) law
- China has refused to cooperate with measures to restrict fentanyl
- Canada is playing an increasing role in fentanyl shipping
- Tariff on Canada revokes de minimis waiver
There are some moving parts here with the retaliation clause as Canada has pledged to announce (if not implement) counter-tariffs in an hour. A US President has also never used the International Emergency Economic Powers Act in this way and that’s likely headed to a court challenge, which I expect he will lose.
I will be keeping a close eye on the news on the weekend to see where this heads. If it doesn’t die down then we’re going to have a wild day in the markets on Monday.
This article was written by Adam Button at www.forexlive.com.
