TARIFFS - FOR THE LAYPERSON
On March 8, 2018, President Donald Trump imposed tariffs of 25% on imports of steel and 10% on imports of aluminium, but made an exception for Canada and Mexico. This exception was removed effective May 31, and all imports of steel and aluminium from Canada became subject to these tariffs. On June 15, 2018, President Trump approved a plan to impose 25% tariffs on imports of goods from China , worth approximately $35 to $40 billion. He has also threatened to impose tariffs on imports of automobiles and auto parts into the US from Canada and other countries. So what exactly are tariffs? And what does President Trump intend to achieve? Finally, what is Canada's plan to retaliate? In simple terms, tariffs are taxes levied on products entering a country from a foreign country. So the US government will charge 25% tax on any steel entering US from Canada. For example, if steel made in Hamilton, ON was originally sold for $600/tonne, the producer will have to pay $150/tonne to