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India Today
19 hours ago
- Business
- India Today
Trump halts trade talks with Canada over digital tax, threatens new tariffs
US President Donald Trump announced Friday that the United States is immediately ending all trade talks with Canada, citing the country's digital services tax as the reason for the abrupt a post on Truth Social, Trump called the tax "a direct and blatant attack on our country" and accused Canada of mirroring similar measures implemented by the European Union. 'Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,' Trump president added that his administration would notify Canada within the next seven days of the new tariffs it will face to continue doing business with the United States. The digital services tax, which took effect in June 2024, imposes a 3% levy on revenues earned by large companies from digital services provided to Canadian users. The measure applies to online advertising, social media platforms, digital marketplaces, and sales involving user data. The first tax payments are scheduled to be collected on further criticized Canada's overall trade practices, calling it 'a very difficult Country to TRADE with,' and claimed that Canadian tariffs on US dairy products can reach as high as 400 per move to terminate trade talks comes amid ongoing tensions between the two countries, following a series of tariffs imposed by the Trump administration earlier this responded with retaliatory duties on American goods. Although both sides have expressed a desire to renegotiate their trade framework, progress has US-Mexico-Canada Agreement (USMCA), negotiated during Trump's first term, is scheduled for review and possible renegotiation by 2026. However, Trump and Canadian Prime Minister Mark Carney had previously aimed to reach a revised agreement by July 21, 2025.- EndsTune InMust Watch
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Business Standard
20-06-2025
- Business
- Business Standard
Canada may hike tariffs on US steel, aluminium based on trade talks: Carney
Canada's Prime Minister Mark Carney said on Thursday he will impose new tariffs on US steel and aluminum imports on July 21 depending the progress of trade talks with US President Donald Trump. Carney, who met with Trump at the Group of Seven meetings in Alberta this week, reiterated Thursday that Canada and the US "agreed to pursue negotiations toward a deal within the coming 30 days". We will review our response as the negotiations progress, Carney said. He added: "In parallel, we must reinforce our strength at home and safeguard Canadian workers and businesses from the unjust US tariffs. That's why today we are announcing Canada will be introducing a series of countermeasures to protect Canadian steel and aluminum workers and producers. "First, Canada will adjust its existing counter-tariffs on US steel and aluminum products on July 21 to levels consistent with progress made in the broader trading agreement with the United States. Carney said Trump's trade war is running the risk of a global recession. The world is in the middle of a trade war and several wars, actual wars, including wars that can have quite significant implications for commodity prices and global growth, said Carney, who led the central banks of both Canada and the United Kingdom. Trump has imposed 50 per cent tariffs on steel and aluminum as well as 25 per cent tariffs on autos. Trump is also charging a 10 per cent tax on imports from most countries, though he could raise rates on July 9, after the 90-day negotiating period set by him would expire. Canada and Mexico face separate tariffs of as much as 25 per cent that Trump put into place under the auspices of stopping fentanyl smuggling, through some products are still protected under the 2020 US-Mexico-Canada Agreement signed during Trump's first term. Canada is the largest foreign supplier of steel, aluminum and uranium to the US and has 34 critical minerals and metals that the Pentagon is eager for. Nearly USD 3.6 billion Canadian dollars (USD 2.6 billion) worth of goods and services cross the border each day. Canada is the top export destination for 36 US states. We need to stabilise the trading relationship with the United States. We need to have ready access to US markets, Carney said. Trump announced with British Prime Minister Keir Starmer that they had signed a trade framework Monday that was previously announced in May. The trade framework included quotas to protect against some tariffs, but the 10 per cent baseline would largely remain as the Trump administration is banking on tariff revenues to help cover the cost of its income tax cuts. Carney didn't say if he would sign a deal with the US if any tariffs remain in place on Canada. This a negotiation, and it is better for the Americans, and of course for Canada, to have true free trade between our countries, particularly in the steel, aluminum and auto sectors, he said.
Time of India
19-06-2025
- Automotive
- Time of India
Americans may pay $2,000 more for each new car, thanks to Trump
Trump's plan of 'Making America Great Again' is likely to backfire and punish its own people and industry. His $30 billion worth auto tariffs are set to have a direct impact on car buyers, or plainly put, the Americans themselves will be bearing the brunt of it. As July approaches and with the tariffs taking effect, car prices are expected to shoot up by almost $2,000 per vehicle, driving up already high US auto prices, Bloomberg reported citing consultant AlixPartners. The firm estimates that automakers will pass along about 80 per cent of the tariff costs directly to customers, who will be paying around $1,760 more per car on average. As a result, US auto sales could drop by 1 million vehicles over the next three years. However, the firm expects a rebound to 17 million annual sales by 2030, a million more than last year, as tariff effects begin to ease. 'These tariffs bring a big wall of cost,' said Mark Wakefield, global auto market lead at AlixPartners, during an online briefing. 'We see consumers taking the majority of the hit.' Major US carmakers have already flagged the impact. General Motors expects a $5 billion hit from the tariffs this year, while Ford estimates $2.5 billion. Both companies say they plan to manage the blow, partly by adjusting prices. Live Events AlixPartners' forecast is less severe than others because it assumes tariffs will reduce over time as trade talks progress. The current 25 per cent tariff on imported cars may fall to 7.5 per cent on fully assembled vehicles and 5 per cent on parts, with even lower rates for vehicles that qualify under the US-Mexico-Canada Agreement (USMCA). 'This tariff wall is not likely to last forever,' Wakefield added. EV incentive Cuts may stall American auto innovation While tariffs may ease in the long term, a more lasting concern for the auto industry is the Trump administration's move to cut electric vehicle (EV) incentives. AlixPartners warned that scaling back support measures, such as the $7,500 consumer tax credit for EVs, will push buyers toward cheaper, gasoline-fueled vehicles. 'Car buyers will follow their pocketbook,' Wakefield said. As a result, the firm has sharply cut its forecast for US EV adoption. It now expects EVs to make up only 17 per cent of total vehicle sales in 2030, down significantly from an earlier projection of 31 per cent. Meanwhile, traditional internal combustion engine vehicles are expected to make up 50 per cent of the market, up from 33 per cent. Hybrid models are forecast to grow modestly to 27 per cent, while plug-in hybrids and extended-range EVs are expected to shrink to just 6 per cent, down from 10 per cent. For consumers, that could mean fewer affordable electric options and a deeper dependence on older, fuel-based technologies, just as the rest of the world moves ahead. The shift away from EVs could leave American automakers falling behind global competitors, especially as companies in China continue to lead in electric vehicle technology. 'It makes it much more likely that they end up licensing or joint venturing or otherwise using platforms and EV technologies from China,' Wakefield said. With fewer incentives and higher costs, the US risks becoming an outlier in clean transportation. 'They'll have the world's best V8 engines by 2028,' Wakefield added. 'They'll probably also have the world's only V8 engines by 2028.'
New York Post
11-06-2025
- Business
- New York Post
Bessent reveals whether Trump will extend tariff deadlines for other countries after breakthrough with China
The Trump administration is 'highly likely' to extend next month's deadline for countries to agree one-for-one trade deals — so long as they are engaged in 'good-faith negotiations,' Treasury Secretary Scott Bessent told lawmakers Wednesday. With a July 8 deadline looming for dozens of nations to strike lightning-quick agreements with the White House, Rep. Don Beyer (D-Va.) pressed Bessent about whether more time will be given. 'I would say, as I have repeatedly said, that there are 18 important trading partners,' Bessent told the tax-writing House Ways and Means Committee. 'It is highly likely that [with] those countries … or trading blocs in the case of the EU, who are negotiating in good faith, we will roll the day forward to continue good faith negotiations. If someone is not negotiating, then we will not.' Advertisement On April 2, which Trump dubbed 'Liberation Day,' he unveiled a 10% baseline tariff on virtually all imports flowing into the US and a myriad of customized rates on almost every country. 3 Treasury Secretary Scott Bessent hinted that an extension of the 'Liberation Day' tariff deadline is coming. AP 3 President Trump hasn't said whether he will extend his tariff deadlines. REUTERS Advertisement Seven days alter, Trump announced a 90-day pause on those customized rates to give time to negotiate deals. The White House has since claimed that last week was the deadline for countries to furnish their best offers on trade. Trump has also imposed a few other key trade deadlines, agreeing last month to delay a 50% planned tariff against the European Union until July 9 after it was set to take effect June 1. The administration has also reached an understanding on trade with the United Kingdom and earlier Wednesday, Trump confirmed progress with China on a 'deal' for a trade negotiation framework. Advertisement Should Trump and Chinese leader Xi Jinping approve the agreement, it will revive key elements of a trade truce with Beijing brokered in Geneva last month. That framework was intended to give the two economic giants until Aug. 10 to cut a more comprehensive trade arrangement. The Geneva arrangement saw China lower its tariffs on most US goods to 10% from 125%, and the US lower its duties down from as high as 145% after the two sides penalized each other in the aftermath of 'Liberation Day.' 3 President Trump quickly paused his 'Liberation Day' tariffs to allow time for negotiations. Advertisement Under the latest arrangement, China will face up to 55% tariffs on most exports, according to Trump. In addition to the 10% baseline rate and the tariffs on China, Trump has imposed a 25% rate on imports from Canada and Mexico that aren't subject to the US-Mexico-Canada Agreement, a 25% duty on foreign steel and aluminum imports, and another 25% levy on most foreign-made vehicles.
New York Post
10-06-2025
- Business
- New York Post
World Bank agrees with Trump's trade complaints, urges countries to lower tariffs on US
The World Bank on Tuesday agreed with President Trump's complaint that foreign countries engage in unfair trade practices with the US and urged the nations to ease their tariffs on American exports. Top economists at the international institution, which helps finance low and middle-income countries, acknowledged that many nations do not provide reciprocal trade access to the US. 'This [situation] could not be sustained indefinitely,' the World Bank's chief economist, Indermit Gill, said during a news briefing, the Washington Post reported. 3 President Trump has long groused that US trading partners engage in unfair practices. REUTERS Gill said the World Bank has had to sharply lower its global growth forecasts because of Trump's blizzard of tariffs to try to help right the situation and amid the ongoing uncertainty over global trade. But he contended that Trump's actions were merely a response to uneven trade access between other countries and the US. Other experts at the World Bank concurred with that assessment and indicated that Europe, Japan and China should all take steps to reduce trade barriers on the US, while calling for an across-the-board rollback on tariffs on all sides. 3 World Bank's chief economist, Indermit Gill, acknowledged Tuesday that several top US trade partners have had uneven trade practices. Bloomberg via Getty Images The World Bank's updated economic forecast downgraded growth expectations for the US in 2025 from its 2.3% projection in January down to 1.4%. If that prediction comes true, it will be the lowest annual growth rate in US gross domestic product since the Great Recession, not counting the COVID-19 pandemic. The institution's forecast for China meanwhile remained steady at 4.5%, while it said global growth will slow down 0.4 percentage points to 2.3%. But there's a risk of further decline, and global growth could plunge to 1.8% if trade issues persist, the World Bank warned. 3 Trump has been particularly keen on overhauling trade relations with China's president, Xi Jinping. POOL/AFP via Getty Images 'After a succession of adverse shocks in recent years, the global economy is facing another substantial headwind, with increased trade tension and heightened policy uncertainty,' the international financial institution wrote in its new forecast. 'Against the backdrop of a deteriorating global environment, growth forecasts for 2025 have been downgraded.' Trump has imposed a 10% baseline tariff rate on virtually every country, 30% duties on imports from China and Hong Kong. 30% duties on imports from China and Hong Kong, a 25% rate on imports from Canada and Mexico that aren't subject to the US-Mexico-Canada Agreement and 25% on foreign steel and aluminum. The Congressional Budget Office has estimated that if all those tariffs implemented by May 13 were left in place, it would generate about $2.8 trillion in revenue over a 10-year period. Trump has also given countries a deadline of July 8 to cut lightning trade arrangements or else face an onslaught of his customized 'Liberation Day' tariffs.
