Get Ready Canada, US Tariffs are Coming... Again 🔥
The American Commerce Secretary, Howard Lundnick, in an interview with NBC News 📺, declared that the USA will enforce new tariffs on imported Canadian lumber and dairy products starting April 2, following on the heels of the steel and aluminum tariffs commencing from March 12.
Remembering Past Trade Disputes 🕰
Trade wars are nothing new to the international stage. Drawing parallels to Trump's predecessor, the USA has a history of imposing economic sanctions on foreign goods. President Reagan's administration placed heavy tariffs on Japanese electronics 📻, significantly impacting Japan's economy, much like the potential impact on Canada today.
What's to come? 💥
Peeling back the layers on this fresh wave of economic onslaught, it's clear this move is part of a broader strategy, and potentially a bargaining chip in the USA's 'war on drugs'.
- The tariffs of 25% are said to remain in effect until the USA is satisfied with Canada and Mexico's control over the flow of the opioid Fentanyl.
- This strategic move resonates with earlier remarks of Kevin Hassett, Director of the National Economic Committee, who stated that Trump's tariff policy is not a part of a 'trade war' but a 'war on drugs'.
Impact on Inflation & Economy 💲
According to Secretary Lundnick, these impending tariffs, while sparking fears of inflation, will make American products cheaper, encouraging consumers to support local businesses. Further, he hinted at upcoming mutual tariffs and negotiations with various countries, promising low barriers and explosive value for American farmers, ranchers and fishermen.
Although the USA's past trade wars sparked global economic recessions, Secretary Lundnick waves off any possibility of such fallout. However, a recent survey conducted by the Conference Board showed respondents' fears of potential economic recession by 2026 skyrocketing 🚀 to a 9-month high in February.
❓ Are we spiraling towards a global economic meltdown, or is this just a transitional phase in the reshaping of global trade?📢 What are your thoughts? Share in the comments! 💬
