US Pres. Trump to announce 10% tariff on some Canadian aluminium
|According to a Bloomberg reports, the US President Donald Trump could be, as soon as today, announce that the US will reimpose tariffs on some Canadian Aluminium imports.
Canada exports of aluminum was US$8.33 Billion during 2019, according to the United Nations COMTRADE database on international trade. C
CAD looking vulnerable
This news comes despite that, on July 1, 2020, the new Canada-United States-Mexico Agreement (CUSMA) entered into force.
Trump is adamant that tariffs will be used to bring back jobs, he will likely say today from prepared remarks at Whirlpool Corporation manufacturing plant.
These announcements will follow a stronger set of data from Canadian trade flows.
We had a June pick-up in trade which was led by 200%+ increases in both exports and imports of motor vehicles and parts, although that still left both sharply below February levels.
Nonetheless, it was a sign that some domestic business investment is re-starting.
The big go-forward risk remains that re-escalation of virus spread in the United States that will prompt renewed shutdowns and weigh on Canadian trade flows once again as a result.
However, this will not go down well with Canada and markets will be on high alert for retaliation.
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