US stocks has wiped out nearly all post-election rally as Donald Trumps’s misguided tariffs begin to bite Canada, Mexico have hit US imports with sweeping levies with China doubling duties on US imports.
Canada hit back with phased levies and China imposed tariffs up to 15% on a large number of goods from the US.
Read also: Trump vows extra 10% tariffs for China from March 4
Mexico says it will announce its response to Trump’s tariff on Sunday.
It makes no sense to have the US, Canada and Mexico who are already benefiting from fair and reciprocal trade to be embroiled in this trade dispute, said Chris Swonger, the CEO of the Distilled Spirits Council of the United States, an industry lobbying group.
“We are concerned that Canadian stores may take US spirits products off their shelves again and also fear that American whiskey will become entangled in a new round of retaliatory tariffs,” Swonger said in a statement Monday shortly after Trump’s announcement.
“Tariffs on spirits products from Canada and Mexico will jeopardize the industry’s contribution to the US economy. The North American spirits sector is highly interconnected and, as a result, tariffs on Tequila and Canadian whisky will harm US spirits companies that have these products in their brand portfolios,” he said.
Economists estimate that Trump’s tariffs on Canada will shave 2 to 4 percentage points off Canada’s gross domestic product growth.
Read also: Trump announces 25% Canada, Mexico tariffs to begin on Tuesday
Canada Prime Minister Justin Trudeau and some of his finance ministers are due to speak shortly. “Canada will not let this unjustified decision go unanswered,” Prime Minister Justin Trudeau said in a statement late Monday in response to Trump’s tariffs.
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