The truth has been revealed after President Donald Trump claimed that Canada was 'one of the highest tariffing nations' in the whole world.
Earlier this week, Trump took to his social media platform, Truth Social, to share a lengthy post about his thoughts on the neighboring nation.
The US president penned: “Based on Ontario, Canada, placing a 25% Tariff on ‘Electricity’ coming into the United States, I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD.”
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Trump went on to say: “This will go into effect TOMORROW MORNING, March 12th. Also, Canada must immediately drop their Anti-American Farmer Tariff of 250% to 390% on various U.S. dairy products, which has long been considered outrageous. I will shortly be declaring a National Emergency on Electricity within the threatened area. This will allow the U.S to quickly do what has to be done to alleviate this abusive threat from Canada.”
He also warned that he will ‘substantially increase’ on 2 April and ‘permanently shut down the automobile manufacturing business in Canada’.
However, what Trump claimed appears to be incorrect.
In fact, Canada is actually a low-tariff country compared to many others in the world.
The World Bank figures show that Canada had a lower average tariff rate than the US in 2022, and of 137 published countries, Canada was 102nd from the top in the most tariffed countries.
Scott Lincicome, vice president of general economics and trade at the Cato Institute think tank, refuted Trump’s claim, calling it ‘nonsense’.
However, Daniel Schwanen, senior vice president at the C.D. Howe Institute in Canada, said that Canada’s high dairy and poultry tariff makes Trump’s claim contain ‘a grain or an element of truth’, but it’s still ‘wrong as a general statement’.
“It would be really unfortunate if people got the impression that Canada is in general a high-tariff country, especially vis-à-vis American products. That’s not the case. It is the case with respect to, really, a sliver of trade,” Schwanen said as per CNN.
Trump has recently been engaged in 'trade wars' with allies of the US, such as Canada, Mexico, and the European Union.
He has insisted his moves will be better for American citizens and businesses, but there have been some reservations.
Tensions between the two countries have increased, with the US inflicting 25 percent tariffs on goods, including steel and aluminum, which Canada has been unhappy about and responded with its own tariffs on the US.
To sweeten the deal, Trump said Canada can dodge the tariff hikes entirely - if it becomes the US' 'cherished 51st state'.
It’s a tense situation.
Topics: Donald Trump, US News, Canada, Politics
Britt Jones