It seems that the market today is fed up with the comings and goings in trade policy due to the continuous changes of the president of the United States, Donald Trump, in his tariff war against Mexico and Canada.
In the opinion of experts, so much uncertainty fosters a lack of confidence among investors. There are those who argue that it is really difficult to keep up with the president in this incipient tariff war.
For former Treasury Secretary Larry Summers, Trump’s threats of tariffs on Canadian aluminum and steel are “the worst trade policy yet.” “It is a self-inflicted wound to the U.S. economy that we cannot afford, at a time when recession risks are rising,” he said in X.
The day before, after a wave of threats to Canada that he would massively increase tariffs on steel and aluminum and new tariffs on electricity in that country, Trump reversed the order and in turn, the province of Ontario paused the 25 percent surcharges on energy service to customers in Michigan, Minnesota and New York.
Trump bullied with a 50 percent tariff on U.S. aluminum and steel, a sharp escalation in the trade battle with Canada in retaliation for Ontario’s export surcharge.
However, the White House remains firm in its intention to make the 25 percent tariffs effective on all steel and aluminum imports starting this Wednesday.
At first, the markets plummeted sharply after Trump’s announcement on his Truth Social network about the possibility of a 50 percent tax on Canadian aluminum and steel.
But, they pared their losses after the joint statement by U.S. Commerce Secretary Howard Lutnick and Ontario Premier Doug Ford.
The Dow crumbled as Trump released his comments outside the White House that he didn’t care what might happen to the stock market.
Trump imposed tariffs on Canada and Mexico at the beginning of last February, then went into “pause for a month” mode, reimposed them and finally suspended them again.
Lutnick and Ford will meet tomorrow to renegotiate the free trade agreement known as USMCA.
With information from Prensa Latina / Translated by Radio Angulo
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