Trump's long-threatened tariffs against Canada and Mexico are now in effect, kicking off trade war
Washington (AP): President Donald Trump's long-threatened tariffs against Canada and Mexico finally went into effect Tuesday, putting global markets on edge and setting up costly retaliations by the United States' North American allies.
Starting just past midnight, imports from Canada and Mexico are now to be taxed at 25 per cent, with Canadian energy products getting tariffed at 10 per cent. In addition, the 10 per cent tariff that Trump placed on Chinese imports in February is doubling to 20 per cent.
In response, Canadian Prime Minister Justin Trudeau said his country would slap tariffs on more than $100 billion of American goods over the course of 21 days. Mexico and China didn't immediately detail any retaliatory measures.
The US president's moves raised fears of higher inflation and the prospect of a devastating trade war even as he promised the American public that taxes on imports are the easiest path to national prosperity. He has shown a willingness to buck the warnings of mainstream economists and put his own public approval on the line, believing that tariffs can fix what ails the country.
“It's a very powerful weapon that politicians haven't used because they were either dishonest, stupid or paid off in some other form," Trump said Monday at the White House. "And now we're using them.”
The Canada and Mexico tariffs were originally supposed to begin in February, but Trump agreed to a 30-day suspension to negotiate further with the two largest US trading partners. The stated reason for the tariffs is to address drug trafficking and illegal immigration, and both countries say they've made progress on those issues. But Trump has also said the tariffs will only come down if the US trade imbalance closes, a process unlikely to be settled on a political timeline.
There is the possibility of the tariffs being short-lived if the US economy suffers, just as there is the possibility of more tariffs to come on the European Union, India, computer chips, autos and pharmaceutical drugs, as Trump has promised. The American president has injected a disorienting volatility into the world economy, leaving it off balance as people wonder what he'll do next.
“It's chaotic, especially compared to the way we saw tariffs rolled out in the first (Trump) administration," said Michael House, co-chair of the international trade practice at the Perkins Coie law firm. "It's unpredictable. We don't know, in fact, what the president will do.''
Democratic lawmakers were quick to criticise the tariffs, but even some Republican senators raised alarms.
Sen. Susan Collins, R-Maine, said she's “very concerned” about the tariffs going into effect because of her state's proximity to Canada.
“Maine and Canada's economy are integrated,” Collins said, explaining that much of the state's lobsters and blueberries are processed in Canada and then sent back to the US.
The world economy is now caught in the fog of what appears to be a trade war.
Even after Trump announced Monday that the tariffs were going forward, Canadian officials were still in touch with their US counterparts.
“The dialogue will continue, but we are ready to respond,” Canadian Defence Minister Bill Blair said in Ottawa as he went into a special Cabinet meeting on US-Canada relations. “There are still discussions taking place.”
Shortly after Blair spoke, Trudeau said Canada would put 25% tariffs against $155 billion Canadian ($107 billion US) of American goods, starting with tariffs on $30 billion Canadian ($21 billion US) worth of goods immediately and on the remaining amount on American products in three weeks.
“Our tariffs will remain in place until the US trade action is withdrawn, and should US tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” Trudeau said.
To resolve the tariffs being imposed Tuesday, the White House would like to see a drop in the seizures of fentanyl inside the United States, not just on the northern and southern borders. Administration officials say that seizures of fentanyl last month in everywhere from Louisiana to New Jersey had ties to foreign cartels.
Damon Pike, technical practice leader for customs and trade services at the tax and consulting firm BDO, suggested that how other countries respond to the tariffs with their own import taxes could escalate the tensions and possibly increase the economic pain points.
“Canada has their list ready," Pike said. "The EU has their list ready. It's going to be tit for tat.''
The Trump administration has suggested that inflation will not be as bad as economists claim, saying that tariffs give a reason for foreign companies to open factories in the United States. On Monday, Trump announced that Taiwan Semiconductor Manufacturing Company, the computer chipmaker, would be investing $100 billion in domestic production.
Still, it can take time to relocate factories spread across the world and train workers with the skills they need.
Greg Ahearn, president and CEO of The Toy Association, said the 20 per cent tariffs on Chinese goods will be “crippling” for the toy industry, as nearly 80 per cent of toys sold in the US are made in China.
“There's a sophistication of manufacturing, of the tooling,” he said. “There's a lot of handcrafting that is part of these toys that a lot of people don't understand … the face painting, the face masks, the hair weaving, the hair braiding, the cut and sew for plush to get it to look just so. All of that are very high hands, skilled labour that has been passed through generations in the supply chain that exists with China."
For a president who has promised quick results, Ahearn added a note of caution about how quickly US factories could match their Chinese rivals.
"That can't be replicated overnight,” he said.
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Karnataka electoral roll SIR exercise to begin from June 20
Bengaluru (PTI): Karnataka will begin SIR of electoral rolls from June 20 as part of a nationwide exercise covering 16 states and three Union territories, CEO Anbu Kumar said on Friday.
The drive will cover more than 5.55 crore electors in the state, he said.
As per the schedule notified by the Election Commission (EC), preparation, training and printing activities will be carried out from June 20 to June 29 and Booth Level Officers (BLOs) will conduct house-to-house visits from June 30 to July 29.
The rationalisation of polling stations is scheduled to be completed by July 29. The draft electoral roll will be published on August 5, following which claims and objections can be filed between August 5 and September 4.
The notice phase and disposal of claims and objections will continue from August 5 to October 3, and the final electoral roll will be published on October 7, it said.
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Addressing a press conference here, CEO Kumar said that in Karnataka, the Office of the Chief Electoral Officer is fully prepared to proceed with the SIR of electoral rolls.
As part of this exercise, we have successfully mapped 86.46 per cent of our voters, he said.
"The primary objective of this entire exercise is to ensure that every eligible voter is enrolled, while simultaneously ensuring that no ineligible individuals are included in the voter list. Therefore, I seek the support and cooperation of all the voters of Karnataka, all political parties, and our friends from the media," he added.
According to the statement issued by the CEO's office, 59,050 BLOs will be involved in the SIR of the electoral roll in the state. The exercise will cover approximately 5,55,74,064 electors in the state as of May 12.
The SIR is a participative and transparent exercise involving electors, political parties and the election machinery. During the revision process, BLOs will undertake house-to-house visits for the distribution and collection of enumeration forms, the statement said.
Stating that there are currently 25,284 Booth Level Agents (BLAs) appointed by recognised political parties, the CEO urged all recognised political parties to appoint BLAs for every polling station to ensure active participation and transparency in the revision process.
Electors have been requested to cooperate with BLOs during the house-to-house distribution and collection of enumeration forms.
Further details regarding the revision process, forms and schedule will be made available on the official websites of the District Election Officers, the Chief Electoral Officer, Karnataka, and the Election Commission of India, the statement said.
