On Monday, President Donald Trump announced that auto tariffs would soon be implemented, but he also hinted that some countries might receive exemptions from the levies he had threatened. Wall Street interpreted this as a show of flexibility on a topic that has been causing turmoil in markets for weeks. By imposing 25% secondary tariffs on any nation that purchases gas or oil from Venezuela, Trump simultaneously created a new front in the global trade war, which caused oil prices to soar.
Negotiations and Concerns
According to Bessent, the United States would also discuss its concerns with each nation, which may include “non-tariff barriers, manipulating the currency, unfair funding (and) labour suppression” in addition to high tariffs. Separate sector-specific tariffs, including the proposed 25% auto and timber taxes would be postponed past April 2, according to a Wall Street Journal report published on Sunday.
Potential New VAT Considerations
Value-added taxes (VATs), which would allegedly incorporate Canada’s merchandise and service tax (GST), are also being considered by the White House. According to Steinberg, the Trump administration is arguing that the GST is discriminatory since Canadian exports to the United States are exempt from paying it, even though it involves both domestic and foreign articles and is neither particular nor discriminatory to the country.
Allegations of Banking Restrictions
Trump has also asserted that American banks are prohibited from conducting business in Canada, which may also be grounds for reciprocal penalties. On the hope that the tariffs that would be revealed next week might not be as onerous as anticipated, U.S. stocks ended Monday’s trading session generally higher. The S&P 500 index closed at its highest level in over two weeks, up around 1.8%.
Tariffs on Essential Goods Imminent
In the meantime, Trump declared that the United States would slap tariffs on aluminium, pharmaceuticals, and automobiles in “the very near future,” claiming that the country would require all of those goods in the event of a conflict or other issues.
