Trump threats continue with new shots at Canada, Mexico
President Trump leveled new tariff threats at Canada and Mexico, part of a recent blitz aimed at allies that rivals his bluster from early in his second term.
Trump threatened to hit Canada aircraft imports with a 50% tariff and said the US would also decertify all new jets from the likes of Bombardier (BDRBF), claiming Canada has used certification hurdles to effectively ban the sale of US Gulfstream jets. Meanwhile, Mexico is facing the potential of levies after Trump promised to impose new tariffs on countries providing oil to Cuba.
Trump's latest tariff salvo at a US ally came days after he threatened to impose 100% tariffs on Canada over that nation's trade deal with China. Canada has negotiated a deal to lower tariffs on Chinese electric vehicles, in return for lower import taxes on Canadian farm products.
But the Trump administration claims the agreement may run afoul the United States-Mexico-Canada free trade agreement (USMCA) that is scheduled to be renegotiated this summer.
Meanwhile, Trump on Monday said he was increasing tariffs on goods from South Korea, accusing the country of "not living up to its Deal" with the US. Tariffs on goods from South Korea would jump back to 25%, from 15%.
Other US trade partners are clinching long-negotiated deals in a rebuke to the Trump tariff regime. India and the EU announced a trade deal on Tuesday aimed at boosting economic ties. The deal from New Delhi and Brussels comes at a time when the US is still trying to establish a trade agreement with India — and shortly after the EU-US agreement almost stalled due to Trump's pursuit of Greenland.
The actions continue a string of renewed tariff-based threats from the president. Last week, Trump called off planned tariffs on European nations that he said were getting in the way of his pursuit of the island. Trump cited the "framework of a future deal" reached with NATO Secretary General Mark Rutte.