Latest news with #US-Mexico-Canada
Yahoo
6 days ago
- Business
- Yahoo
Leaders of Canada and Mexico lash out at Trump steel tariff hike
The leaders of Canada and Mexico have criticised the latest hike in steel and aluminium tariffs under United States President Donald Trump, who increased import taxes on the metal from 25 to 50 percent. The international condemnation came just hours after the latest tariff increase went into effect early on Wednesday. Speaking to reporters on Wednesday, Canadian Prime Minister Mark Carney said the tariff increases were 'unjustified'. 'They're illegal. They're bad for American workers, bad for American industry and, of course, for Canadian industry,' he said. Mexican President Claudia Sheinbaum, meanwhile, pledged to pursue countermeasures if the Trump administration refuses to grant tariff relief. She warned that the tariffs would have a 'huge impact' on Mexico's steel and aluminium industries. 'This isn't about an eye for an eye, but rather about protecting our industry and our jobs,' she added, without specifying what steps her government might tariff hike had been unveiled last Friday, when Trump held a rally with steelworkers outside Pittsburgh, Pennsylvania. That region of the US is a part of the Rust Belt, an area that has been heavily affected by the decline in US manufacturing. Trump pledged to use tariffs and other measures to bring jobs and investments back to the area. Previously, in March, Trump set tariffs on steel and aluminium at 25 percent. But he threatened to lift that rate to 50 percent specifically for Canadian imports of the metals, a plan he later appeared to walk back. Those threats, however, roiled relations between the US and its northern neighbour in particular. Canada is the top supplier of steel to the US, followed by Brazil and then Mexico. South Korea and China also top the list. Canada is also responsible for about 40 percent of aluminium imports to the US, followed by the UAE, Russia and Mexico. Carney's government has pledged to pursue retaliatory measures so long as Trump's tariffs remain in place. On Wednesday, one of Canada's largest labour unions, Unifor, called on Carney to take immediate action against the latest tariff hike, including by limiting the country's exports of critical metals to the US. 'Unifor is urging the federal government to act without delay to defend Canada's manufacturing sector and counter the escalating trade assault,' the union said in a statement. Premier Doug Ford — who leads the top manufacturing province in Canada, Ontario — also called for Canada to respond in kind and 'slap another 25 percent' on US steel imports. 'It's tariff for tariff, dollar for dollar. We need to tariff the steel coming into Canada an additional 25 percent, totalling 50 percent,' Ford told reporters. 'Everything's on the table right now.' Both Canada and Mexico have been hard hit by Trump's aggressive tariffs, which include a blanket 25-percent tax on all imports not subject to the US-Mexico-Canada free trade agreement (USMCA), as well as a separate 25-percent levy on automobile imports. The three countries have highly integrated economies, with products like automobiles being built using supplies and factories from multiple locations. The USMCA pact was agreed upon during Trump's first term, from 2017 to 2021. But he has since signalled he hopes to renegotiate the free-trade deal to get more favourable terms for the US. But the doubling of the US steel and aluminium tariffs is expected to have a global impact, well beyond North America. The European Union is also bracing for the increase. The bloc's trade commissioner, Maros Sefcovic, met US Trade Representative Jamieson Greer on the sidelines of a meeting for the Organisation for Economic Cooperation and Development (OECD) on Wednesday. 'We're advancing in the right direction at pace – and staying in close contact to maintain the momentum,' Sefcovic wrote on X afterwards. UK Trade Secretary Jonathan Reynolds also met with Greer, and he said steel and aluminium tariffs would remain at 25 percent for his country. The two countries have been in the process of forging a post-Brexit bilateral trade agreement, announcing a 'breakthrough' last month. 'We're pleased that as a result of our agreement with the US, UK steel will not be subject to these additional tariffs,' a British government spokesperson said. Trump's latest tariff hike comes days after a federal court ruled that his so-called reciprocal tariffs — which imposed customised taxes on nearly all US trading partners — were illegal. Trump had imposed those tariffs in April, only to pause them for 90 days. The court's ruling was quickly paused while legal proceedings continued, and Trump's tariffs have been allowed to remain in place for now. One of the hardest hit countries has been China, which saw US tariffs against its exports skyrocket to 145 percent earlier this year. The Trump administration, however, has since sought to reach a deal with China to end the trade war between the world's two largest economies. The White House said on Monday that Trump would speak to Chinese President Xi Jinping this week, raising hopes the duo could soothe tensions and speed up on Wednesday, Trump appeared to dampen hopes for a quick deal. 'I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!' he posted on his Truth Social platform. When asked about the remarks during a regular news briefing, Chinese Foreign Ministry spokesperson Lin Jian said Beijing's 'principles and stance on developing Sino-US relations are consistent'.
Fashion Network
21-05-2025
- Business
- Fashion Network
Canada Goose avoids tariff woes with made-in-Canada supply chain
Canada Goose Holdings Inc. said US tariffs have only made a minimal impact on the maker of high-end coats and winter gear, due to its Canada-based supply chain. The company, known for its $1,500 parkas, manufactures about 75% of its products in Canada and nearly all of those units comply with the standards of the US-Mexico-Canada trade agreement, thereby exempting those goods from US tariffs, executives said. 'Our made-in-Canada products, which represent the vast majority of our offering, are not currently impacted by the recently announced tariffs on imports into the United States,' Chief Executive Officer Dani Reiss told investors on a conference call. Canada Goose posted sales and profit that surpassed Wall Street's expectations in its most recent quarter, sending shares up as much as 29.6% on Wednesday in New York — the biggest intraday rise since February 2021. Companies across the apparel industry have struggled to cope with US President Donald Trump 's trade war. Many brands are reliant on production hubs in Asia, such as China and Vietnam, that have been targeted by Trump's tariffs. A portion of Canada Goose's goods are made in Europe, which is facing elevated tariff rates from the US, but executives said those levies would have a 'minimal financial impact.' Yet executives remain worried about trade squabbles hurting the global economy. The company declined to provide guidance for its current fiscal year, citing concerns about the 'consumer environment' and the lack of visibility into potential future policy changes. 'There's no doubt that the trade environment is choppy,' said Chief Financial Officer Neil Bowden. 'The level of unpredictability there, at least in our view, is such that we're not prepared to provide an outlook for the year.'
Fashion Network
21-05-2025
- Business
- Fashion Network
Canada Goose avoids tariff woes with made-in-Canada supply chain
Canada Goose Holdings Inc. said US tariffs have only made a minimal impact on the maker of high-end coats and winter gear, due to its Canada-based supply chain. The company, known for its $1,500 parkas, manufactures about 75% of its products in Canada and nearly all of those units comply with the standards of the US-Mexico-Canada trade agreement, thereby exempting those goods from US tariffs, executives said. 'Our made-in-Canada products, which represent the vast majority of our offering, are not currently impacted by the recently announced tariffs on imports into the United States,' Chief Executive Officer Dani Reiss told investors on a conference call. Canada Goose posted sales and profit that surpassed Wall Street's expectations in its most recent quarter, sending shares up as much as 29.6% on Wednesday in New York — the biggest intraday rise since February 2021. Companies across the apparel industry have struggled to cope with US President Donald Trump 's trade war. Many brands are reliant on production hubs in Asia, such as China and Vietnam, that have been targeted by Trump's tariffs. A portion of Canada Goose's goods are made in Europe, which is facing elevated tariff rates from the US, but executives said those levies would have a 'minimal financial impact.' Yet executives remain worried about trade squabbles hurting the global economy. The company declined to provide guidance for its current fiscal year, citing concerns about the 'consumer environment' and the lack of visibility into potential future policy changes. 'There's no doubt that the trade environment is choppy,' said Chief Financial Officer Neil Bowden. 'The level of unpredictability there, at least in our view, is such that we're not prepared to provide an outlook for the year.'
Business Insider
08-05-2025
- Business
- Business Insider
Here's where Trump's trade talks stand
President Donald Trump is running out of time to cut trade deals before the 90-day pause on his so-called reciprocal tariffs could come back into effect. Trump said on May 6 that he's not in a rush to sign a deal. In previous weeks, the president had said that trade deals could be announced soon, only for nothing to happen. "Everyone says, 'When, when, when are you going to sign deals?' We don't have to sign deals. We could sign 25 deals right now, Howard, if we wanted," Trump said on Tuesday in the Oval Office, motioning to Commerce Secretary Howard Lutnick. "We don't have to sign deals. They have to sign deals with us. They want a piece of our market. We don't want a piece of their market, we don't care about their market." Wall Street continues to hang on every word. There's even evidence that traders grow more nervous when Trump's more protectionist advisors are the news. Here's what we know about where discussions stand for major US partners. China The US and China can't agree on who initiated discussions, but it is significant progress that the world's two largest economies are talking. Treasury Secretary Scott Bessent has said that a deal with China is more complex, so the Trump administration views it as separate from discussions with roughly 17 other nations. Beijing has publicly boasted that it can endure a protracted trade fight. Trump has previously said that discussions had occurred, but Beijing denied this. A breakthrough could be coming. On May 6, Bessent said that he and US Trade Representative Jamieson Greer will travel to Switzerland for face-to-face talks with He Lifeng, China's top economic official. Beijing said that the Swiss government invited He. The talks will occur in the same city where the World Trade Organization is headquartered. Trump has long complained about China's 2001 admission to the WTO. Canada Trump met with the newly elected Canadian Prime Minister Mark Carney on May 6 in the Oval Office. Carney told reporters that Canadian officials and the two leaders will follow up on trade discussions from the Oval Office meeting "in the coming weeks." During a public portion of their meeting, Trump and Carney both said that there need to be changes made to the US-Mexico-Canada agreement, Trump's first-term rewrite of the North American Free Trade Agreement. In the meantime, the US continues to impose a 25% tariff on non-USMCA-compliant Canadian goods and a 10% tariff on energy imported from Canada. Additional US tariffs on automobiles, steel, and aluminum also apply to Canadian goods. Canada retaliated by imposing a 25% tariff on US goods, including steel, aluminum, and agricultural goods. India Vice President JD Vance said on May 1 that a US-India trade deal would "be among the first deals" the administration will reach. "Pretty soon," Vance told Fox News anchor Bret Baier. Vance traveled to India for a four-day trip in April, spending significant time with Indian Prime Minister Narendra Modi. Trump imposed a 27% tariff on Indian goods as part of his "Liberation Day" announcement. His 90-day pause on those tariffs ends on July 9. As a large purchaser of Venezuelan oil, India could also face additional US tariffs. Vietnam Vietnam's top trade negotiator Nguyen Hong Dien on May 7 urged his country's businesses to be "proactive" in doing more business with the US. Greer, according to a Bloomberg News report, told Dien during a March meeting in Washington that Vietnam needed to do more to lower the US trade deficit. The US deficit was $123.5 billion in 2024, an 18% increase from the previous year. Trump imposed a 46% tariff on Vietnam as part of his "Liberation Day" announcement — it, too, is subject to the 90-day pause. European Union European Trade Commissioner Maros Sefcovic said on May 6 that the European Union will release more details about potential countermeasures should talks with Trump fail. "Negotiations clearly come first but not at any cost," Sefcovic told reporters, per NBC News. In April, Italian Prime Minister Giorgia Meloni became the first European leader to visit Washington after Trump roiled global markets with his "Liberation Day" tariffs. At the time, both she and Trump spoke positively of a potential deal. Japan Trump said on April 30 that he had "potential deals" with Japan, India, and South Korea. Ryosei Akazawa, Japan's chief negotiator, told reporters a few days later that he and his US counterparts had "concrete discussions." "There are still many issues that need to be addressed and resolved before a final agreement can be reached," Akazawa said. Trump imposed a 24% tariff on Japanese goods before announcing his 90-day pause. South Korea South Korea sent representatives to the US early on, but it's unlikely to be one of the first countries to strike a deal. That's because South Korea is holding snap elections on June 3. A senior government official previously told Reuters that no deal would come before the election.
Yahoo
06-05-2025
- Automotive
- Yahoo
Tariff Battle with China Already Impacting Supply Chain for Ford
Ford previously announced it will not raise sticker prices on new cars and trucks as an offset for tariffs, though industry prices are expected to rise as incentives disappear. Sourcing rare earth materials 'has become rather complicated in the last few weeks,' an executive said, and 'it would take only a couple' of such component materials to disrupt production of certain models. Ford claims to be number one in vehicles assembled in the US, employing the most US hourly autoworkers and exporting more US-assembled vehicles to other markets (see Mustang). Trump administration tariffs on imported vehicles and parts will cost Ford $2.5 billion gross and $1.5 billion net earnings before interest and taxes (EBIT) this year, CEO Jim Farley told Wall Street analysts in the automaker's first-quarter earnings call on Monday. Bolstered by Ford's claims that it has more domestic production in the US than any other automaker, its anticipated tariff hit is better than the $4 billion cut in profits General Motors expects to suffer this year. Ford previously announced it will not raise sticker prices on new cars and trucks as an offset for tariffs, though industry prices are expected to rise as incentives disappear and average transaction prices spike upward. But employee pricing has been extended to mitigate sticker shock for consumers, Farley said. The company's current inventory level is 56 days' supply on dealer lots, which is about normal for US automakers, though slim enough for Ford and Lincoln dealerships to meet demand near-term. Unlike GM in its call last week, Ford executives said they will not issue fiscal year 'guidance' for full-year 2025, though the company said its sales levels are tracking with the $7 billion to $8.5 billion adjusted EBIT it projected in its fourth-quarter/full-year 2024 earnings call last January. Ford posted adjusted EBIT of $10.2 billion in 2024. Ford reiterated its position as number one in vehicles assembled in the US, by volume, employing the most US hourly autoworkers and exporting more US-assembled vehicles to other markets (see Mustang). The tariffs are prompting Ford to ship vehicles assembled in Mexico for Canadian customers on bonded carriers to avoid the tariffs, said Kumar Gulhotra, chief operating officer, and it has stopped exporting from the US to China. 'Nearly 80% of parts in the US are USMCA compliant,' Gulhotra said, referring to the US-Mexico-Canada trade agreement President Trump negotiated during his first administration. 'But we're looking at improving the US supply chain.' Gulhotra warned of a potential problem developing recently over the Trump administration's trade war with China. Tom Murphy Bringing in rare earth materials 'has become rather complicated in the last few weeks,' he said, and 'it would take only a couple' of such component materials to disrupt production of certain models, due to volume and pricing implications. Ford reported first-quarter adjusted EBIT of $1 billion, down 63%, from $40.7 billion in gross revenue, a 5% drop. Ford's commercial truck business continues to keep the lights on, as Pro posted an EBIT of $1.3 billion last quarter despite planned downtime at the Kentucky truck plant, according to Sherry House, chief financial officer. Ford has better than 40% share of the Classes 1-7 truck market in the US, and Pro's 675,000 paid software subscriptions represent a 20% increase year-over-year. Pro's profit was partially offset by an $800 million loss for Model e although the automaker said it continues to find cost savings in electric-vehicle development. Ford Blue, like most other auto brands, had strong first-quarter sales as new vehicle buyers rushed to beat tariff pricing, and Ford's mainstream ICE/hybrid consumer vehicle unit earned a 'modest profit' of $100 million, House said. How long can Ford sustain losses with its all-electric Model e business unit before difficult decisions must be made? Please comment below.
