The year-long feud with Donald Trump is finally over. On Friday, May 17, it was announced that the tariffs imposed on steel and aluminum will be lifted by both the U.S. as well as Canada. Prime Minister Justin Trudeau referred to this as “pure good news” as it refacilitates the synergetic trade relations between Canada and the U.S.
Throughout the first half of 2018, Donald Trump imposed a number of tariffs in various countries including Canada, Mexico, China, and others. The original tariffs: 25 per cent on Canadian steel and ten per cent on Canadian aluminum, were announced by the U.S. on May 31, 2018, Canada retaliated with similar surtaxes on U.S. steel, aluminum, and over 70 other U.S. products.
These tariffs were introduced as an effort to “bring jobs and industry back onto American shores”. Trump has also referred to the tariffs numerous times on social media, stating that he is “a Tariff Man” and that “Tariffs are the greatest!”.
News of these tariffs being lifted brought a lot of hope to Canadian businessmen. “It’s everything we’ve always asked for,” Jean Simard, a spokesperson for the Aluminum Association of Canada said.
The association also emphasized the importance of protecting domestic suppliers from cheaper foreign supplies flooding the market. U.S. imposed tariffs were meant to protect local suppliers from foreign steel entering into the U.S. via Canada.
Over the last year, financial markets were heavily impacted by these tariffs. Speculation surround them and their sustainability.
With the new deal, Trump plans to strengthen trade relations with Canada. Investors have more reason to be hopeful for the Canadian economy in the near future.