The president is leaving the G7 early to focus on the Middle East
Canadian PM Justin Trudeau said, “We are going to try to make America great again.” Meanwhile, US President Donald Trump said he was leaving the G7 in Canada early to return to the US to focus on “the conflict in the Middle East” amid the trade war between the world’s top democracies. The G7 Summit is scheduled to begin on Monday in Canada.
There is a reason why it matters to automakers
A trade group representing US-based auto parts makers has said that 25% tariffs on Mexico and Canada would have “severe consequences” for suppliers, workers and consumers alike. It added that it was not dependent on Canada. This comes as US President Trump threatened to impose 25% tariffs on Mexico and Canada if they don’t strike a deal to reduce immigration or stop drugs from entering.
The Mexico tariffs were put on hold after a call between Trump and the Mexican president
US President Trump has said that a 25% import tax on goods from Mexico and Canada, alongside 10% tariffs on goods from China, will go into effect on Tuesday. The move would raise the costs of cars imported from Mexico, like Toyota Tacoma or Chrysler Pacifica. It would raise the price of cars assembled in the US because many of their parts are from companies in Canada.
Mexico, Canada and China are included in the new phase of the trade war
Goods from Mexico and Canada will face a 25% import tariffs from February 1 under the proposed plan by US President Donald Trump. The White House has said Trump was very much considering tariffs on China on the same day. Trump has previously threatened up to a 60% tariff on goods from China, a 100% tariff on goods from Mexico and a 200% tariff on John Deere products imported into the US.