Canada imposes 25% additional fees on US commodities worth 21 billion dollars

Canada announced today, Wednesday, the imposition of additional customs duties by 25% on US imports of more than $ 20 billion, in response to the customs duties imposed by the administration of US President Donald Trump on steel and aluminum imports, which entered into force midnight Wednesday, USA, Washington time. Canadian Finance Minister Dominic Lublin indicated during a press conference that these new fees will include his country’s steel and aluminum imports from the United States, in addition to other American goods, including computers, sports equipment and raw iron products. Lublan explained that these procedures will enter into force on Thursday.

The move comes in the aftermath of Canada imposing a 25% reprisal fee on US imports of $ 30 billion on March 4, in response to Trump’s assumption of large -scale fees on Canadian goods. Although Trump granted some temporary exemptions to some fees on the sixth of March after a sharp decline in the stock market, Canadian counter -measures are still in effect.

Trump imposed 25% fees on steel and aluminum imports coming from all countries, and not only from Canada. After entering into force early Wednesday morning, the European Union initiated its intention to impose customs duties on American imports of more than $ 28 billion as of next April. Commenting on this step, Canadian Foreign Minister Melanie Jolie said during the press conference: “It goes beyond our economy, as it relates to the future of our country.” She added: “The Canadians are tired, and we are a strong country.”

And Trump expanded, during the few weeks he spent in the White House within his second term, in the imposition of customs duties, considering it a major tool in negotiating with other countries, a source of increased revenue, and a means to protect and enhance local industries. Nevertheless, economists have warned that customs duties, which they described as taxes, are paid by importers, can lead to supply chains disorder and raise prices on consumers.

The approach that Trump followed in the implementation of his customs plans caused a great state of uncertainty in Wall Street, which partially contributed to the decline in the stock market for several weeks. Today, Wednesday, the Dow Jones Industrial Index decreased by about 400 points, represented approximately 1% of its value, while the Standard & Poor’s index lost 500 approximately half of the percentage, and the Nasdaq complex index was close to the point where the transactions began.

The pressure on stock markets increased amid traders’ fears that escalating trade tensions will lead to economic recession in the United States. Part of the recent intense sales is anxious that Trump’s volatile trade policies may lead to high inflation and slowdown, a phenomenon known as inflationary stagnation.

This week alone, Dow Jones, Stander and Poor’s 500 and Nasdak indicators decreased by more than 3% for each of them. Standard & Poor’s 500 also fell on Tuesday for a short period to the correction area, as it lost 10% of the highest level in February. Last month, Standard & Poor’s lost approximately 8%, while Dow Jones and Nasdak fell by 6.6% and 11.3%, respectively.