Latest news with #UnitedStates-Mexico-Canada
NZ Herald
17 hours ago
- Business
- NZ Herald
Trump warns Canada trade deal at risk over Palestine recognition
France was the first to take the step last week. Days later, Trump announced a trade deal with the European Union, which includes France and several other countries that have recognised Palestinian statehood. Since his return to the White House, Trump has levied 25% tariffs on Canadian goods not covered by the United States-Mexico-Canada trade pact (USMCA). In July, he threatened to raise tariffs on Canada to 35% on August 1 because of unsubstantiated concerns over an 'invasion' of fentanyl from Canada. A White House official, who spoke on the condition of anonymity to discuss internal deliberations, said it is likely that USMCA-compliant goods would remain exempt but that Trump would make the final decision. Nearly 60% of US imports from Canada were USMCA-compliant in May, according to data from the US Commerce Department, up from 34% in January. Trump has separately imposed tariffs on Canadian steel, aluminium, and autos. Trump threatened sweeping tariffs on Canadian imports as Canada joins G7 allies in recognising Palestine. Photo / Getty Images Canadian officials have for months travelled to the US to seek a deal that would lift the levies, but they have recently said it is likely that any agreement with the US will involve some level of tariffs. Carney said Wednesday that negotiations might drag on beyond August 1. Canada's Foreign Ministry did not immediately respond to a request early Thursday for comment on Trump's Truth Social post. Carney was elected leader of Canada's Liberal Party in March and led it to a comeback victory in April against a backdrop of rising anxiety over Trump, while running on an explicitly anti-Trump platform. Carney declared the traditional US-Canada relationship 'over' and pledged to fight back with targeted retaliatory tariffs. When Trump repeatedly mused about the US annexing Canada, Carney said his country was 'not for sale'. In recent months, Carney has tried to use flattery and firmness with Trump – to mixed results. Trump has called him 'a nice gentleman'. But in June, Trump abruptly halted trade talks with Canada over the country's digital services tax, calling it 'a direct and blatant attack' on the US and branding Canada as a 'difficult' partner. The Canadian Government later said it would rescind the tax. Days later, Trump threatened more tariffs. Now, geopolitics could further destabilise the talks. Canada is the third major US ally in a week, after France and Britain, to say it is prepared to change its decades-old stance on Palestinian statehood as outrage has grown over the rapidly deteriorating humanitarian situation in Gaza. Canada is the third Group of Seven nation to back Palestinian statehood, following France and Britain. Photo / Getty Images Local authorities say more than 60,000 people – including 18,500 children – have been killed in the Israeli military campaign against Hamas in Gaza. Israel has restricted aid into the enclave, prompting the UN to warn about 'mounting evidence of famine and widespread starvation'. Trump acknowledged Monday that there is 'real starvation' in Gaza, breaking with Israeli Prime Minister Benjamin Netanyahu, who said Monday that 'there is no starvation in Gaza, no policy of starvation in Gaza'. Yet on Tuesday, when asked about France's and Britain's endorsements of a Palestinian state, Trump said: 'You could make a case that you're rewarding Hamas if you do that. And I don't think they should be rewarded. So I'm not in that camp'. Canada's announcement was met with praise from Palestinian officials and harsh criticism in Israel. The Palestinian Authority's Foreign Ministry said in a statement posted on X: 'This courageous and principled decision marks a significant step towards justice, peace, and the long-overdue realisation of the Palestinian people's inalienable right to self-determination.' The Israeli Foreign Ministry said: 'The change in the position of the Canadian government at this time is a reward for Hamas and harms the efforts to achieve a ceasefire in Gaza and a framework for the release of the hostages'.
Yahoo
a day ago
- Business
- Yahoo
Trump announces agreement to pause higher tariffs on Mexico for 90 days
President Donald Trump announced on Thursday he's extending the existing tariffs with Mexico, America's largest trading partner, and he will pause higher tariffs that were set to go into effect Friday. That means the status quo will continue, in which goods from Mexico are taxed at 25%, unless they are compliant with the United States-Mexico-Canada trade deal Trump signed under his first term. In those instances, goods won't face any tariffs, barring certain sectoral tariffs in place. 'I have just concluded a telephone conversation with the President of Mexico, Claudia Sheinbaum, which was very successful in that, more and more, we are getting to know and understand each other,' Trump said in a Truth Social post. 'The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border. We have agreed to extend, for a 90 Day period, the exact same Deal as we had for the last short period of time.' 'We will be talking to Mexico over the next 90 Days with the goal of signing a Trade Deal somewhere within the 90 Day period of time, or longer,' Trump wrote. America has come to rely on Mexico for a wide range of goods, including cars, electronics, footwear and apparel. The country overtook China to become America's top source of imports in 2023 and has remained in that position since then. The shift has occurred amidst a slew of higher tariffs Trump imposed on China during his first term, which former President Joe Biden largely kept in place. Mexico also imports a ton of goods from the United States: It is No. 2 export market for the United States behind Canada. Thus far, Mexico has not retaliated against any of the tariffs Trump has imposed. However, Sheinbaum has repeatedly vowed to slap higher tariffs on American goods were Trump to impose higher tariffs on Mexican goods. Down to the wire for higher tariffs Goods from Canada, America's second-largest trading partner, have been tariffed at nearly identical rates as Mexico since April. However, it's not clear if Trump has plans to speak to Canada's Prime Minister Mark Carney ahead of a 12:01 a.m. ET deadline, after which goods from Canada could face 35% tariffs. Dozens of other countries face that same threat, with tariff rates varying by country. Trump may not necessarily wait until 12:01 a.m. ET, however. In the case of Brazil, he enacted an additional 40% tariff on goods from there on Wednesday, albeit with some key exclusions. It's unclear whether there will be exclusions on certain goods for the other countries Trump has sent letters to heads of state threatening to raise tariffs. Countries that haven't received letters aren't off the hook for higher tariffs either, given Trump's vowed to increase the universal tariff rate most countries have faced from 10% to between 15% to 20%. This is a developing story and will be updated. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNN
a day ago
- Business
- CNN
Trump announces agreement to pause higher tariffs on Mexico for 90 days
President Donald Trump announced on Thursday he's extending the existing tariffs with Mexico, America's largest trading partner, and he will pause higher tariffs that were set to go into effect Friday. That means the status quo will continue, in which goods from Mexico are taxed at 25%, unless they are compliant with the United States-Mexico-Canada trade deal Trump signed under his first term. In those instances, goods won't face any tariffs, barring certain sectoral tariffs in place. 'I have just concluded a telephone conversation with the President of Mexico, Claudia Sheinbaum, which was very successful in that, more and more, we are getting to know and understand each other,' Trump said in a Truth Social post. 'The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border. We have agreed to extend, for a 90 Day period, the exact same Deal as we had for the last short period of time.' 'We will be talking to Mexico over the next 90 Days with the goal of signing a Trade Deal somewhere within the 90 Day period of time, or longer,' Trump wrote. Goods from Canada, America's second-largest trading partner, have been tariffed at nearly identical rates as Mexico since April. However, it's not clear if Trump has plans to speak to Canada's Prime Minister Mark Carney ahead of a 12:01 a.m. ET deadline, after which goods from Canada could face 35% tariffs. This is a developing story and will be updated.
Time of India
2 days ago
- Business
- Time of India
Trump's tariffs give chocolate makers in Canada, Mexico an edge over US firms
U.S. President Donald Trump's trade tariffs are meant to boost domestic manufacturing. But in the chocolate industry, they're doing the opposite: ramping up the cost of importing already-pricey cocoa and hurting the competitiveness of local factories versus Canadian and Mexican outfits that supply the U.S., according to conversations with 11 industry executives, representatives, experts and traders. Under the United States-Mexico-Canada free trade pact (USMCA), which the Trump administration has confirmed remains in place, Canada and Mexico can export chocolate to the U.S. tariff-free no matter where they sourced their inputs of cocoa - a tropical crop that does not grow in the United States. Canada also has zero tariffs on imports of raw and semi-processed cocoa like butter and powder, while Mexico grows its own beans, meaning factories both north and south of the U.S. border can produce more cheaply than those domestically who now have to pay tariffs of between 10-25% on cocoa inputs. The rates could rise to 35% on August 1. A government official said that the White House continues to monitor trends in trade and commerce and listen to industry feedback to deliver on Trump's economic agenda. Top U.S. chocolate maker Hershey, which mainly makes chocolate in the U.S. but has plants in Canada and Mexico, has estimated it would face $100 million in tariff costs in its third and fourth quarters if the levies remain in place. Live Events Smaller firms like Somerville, Massachusetts-based Taza Chocolate, which produces chocolate from scratch using imported cocoa, have no alternatives to U.S. manufacturing. Taza in May had to pay $24,124 in duties on a container of cocoa from Haiti, subject to the blanket 10% tariff imposed by Trump, a Customs and Border Protection invoice showed. Taza faces a customs cheque of more than $30,000 to release its next container of cocoa from the Dominican Republic, founder and CEO Alex Whitmore said. "For a company our size, that's our profit margin gone so the immediate thought is OK, the rules have changed, we just need to create the most cost-effective solution for the consumer," said Whitmore. He initially explored offshoring part of Taza's manufacturing to Canada to benefit from USMCA terms, but decided against it given the significant investment of both money and time that would require, in a volatile business environment. "Right now, the environment is so uncertain that we're just hunkering down and hoping this will pass," Whitmore said. "A lot of us business owners are kind of frozen." Customs data compiled for Reuters by Trade Data Monitor (TDM) shows Canada's chocolate exports to the U.S. grew by 10% in volume terms in the five months to end-May, indicating some Canadian manufacturers are taking advantage of the opportunity created by tariffs. Companies benefiting are mostly Canadian and Mexican contract chocolate makers , or multinational contractors like Barry Callebaut that have a significant footprint in Canada and Mexico, industry sources said. Barry Callebaut, which has just under half its North America chocolate factories in Canada and Mexico, declined to comment. Its CEO Peter Feld said at its July post-results conference call: "On tariffs ... we have operations in the U.S., we have operations in Canada, we have operations in Mexico. So we can actually navigate this environment in the right way." Contract chocolate firms produce raw chocolate that U.S. factories add ingredients to and sell as American chocolate. Tariffs - a pillar of Trump's "America First" economic agenda - come at a delicate time for U.S. chocolate makers as consumers are already buying less after absorbing double-digit inflation over the past several years. In chocolate specifically, prices have risen sharply as cocoa tripled in value to hit record highs in the first four months of last year, and remains well above historical averages because of adverse weather and disease in top growers Ivory Coast and Ghana. Under pressure from rising input costs, Hershey earlier this month rolled out double-digit price hikes across its confectionary products like Reese's cups to retailers like Walmart and Kroger. Cocoa accounts for about 30-50% of the cost of a bar of chocolate. Hershey said its recent price hikes were not related to tariffs. Taza has raised its wholesale prices by 10% since a year ago, and the price of its chocolate bars on its website rose in June to $6.99 from $5.99 previously, but Whitmore also said tariffs would cause further price hikes. Because cocoa can't be sourced domestically, Hershey said in May it is "engaging with the U.S. government to seek an exemption" for cocoa. It declined to comment on whether it was counting on imports from its Canada and Mexico plants to help mitigate tariff costs. M&Ms maker Mars, which said Tuesday it is investing $2 billion in its U.S. manufacturing, including chocolate, has not changed its sourcing structure and continues to make 94% of its U.S. products locally. A Lindt spokesperson said the Lindor truffle maker will decide on possible changes to its sourcing after August 1. Paolo Quadrini, director general of Mexican chocolate and candy association Aschoco Confimex, said U.S. tariffs are "creating new opportunities for Mexican companies." "The sentiment among companies and entrepreneurs, as well as requests from U.S. chocolate companies to manufacture in Mexico, is real and has been increasing," he said. The chocolate market in the U.S., the world's top chocolate consumer, is worth $25-30 billion, according to investment bank TD Cowen, and imports from top supplier Canada account for about 10% of that total, while those from No. 2 supplier Mexico account for some 2.5%. Tareq Hadhad, CEO of mid-sized Nova Scotia-based chocolate maker Peace by Chocolate said tariffs had largely prompted Canadian and American firms to opt for locally produced goods but that contract chocolate makers in Canada had benefited from the new trade dynamic. "It's an advantage for them," he said.
The Star
2 days ago
- Business
- The Star
Trump's tariffs give chocolate makers in Canada, Mexico an edge over US firms
LONDON/NEW YORK: U.S. President Donald Trump's trade tariffs are meant to boost domestic manufacturing. But in the chocolate industry, they're doing the opposite: ramping up the cost of importing already-pricey cocoa and hurting the competitiveness of local factories versus Canadian and Mexican outfits that supply the U.S., according to conversations with 11 industry executives, representatives, experts and traders. Under the United States-Mexico-Canada free trade pact (USMCA), which the Trump administration has confirmed remains in place, Canada and Mexico can export chocolate to the U.S. tariff-free no matter where they sourced their inputs of cocoa - a tropical crop that does not grow in the United States. Canada also has zero tariffs on imports of raw and semi-processed cocoa like butter and powder, while Mexico grows its own beans, meaning factories both north and south of the U.S. border can produce more cheaply than those domestically who now have to pay tariffs of between 10-25% on cocoa inputs. The rates could rise to 35% on August 1. A government official said that the White House continues to monitor trends in trade and commerce and listen to industry feedback to deliver on Trump's economic agenda. Top U.S. chocolate maker Hershey, which mainly makes chocolate in the U.S. but has plants in Canada and Mexico, has estimated it would face $100 million in tariff costs in its third and fourth quarters if the levies remain in place. Smaller firms like Somerville, Massachusetts-based Taza Chocolate, which produces chocolate from scratch using imported cocoa, have no alternatives to U.S. manufacturing. Taza in May had to pay $24,124 in duties on a container of cocoa from Haiti, subject to the blanket 10% tariff imposed by Trump, a Customs and Border Protection invoice showed. Taza faces a customs cheque of more than $30,000 to release its next container of cocoa from the Dominican Republic, founder and CEO Alex Whitmore said. "For a company our size, that's our profit margin gone so the immediate thought is OK, the rules have changed, we just need to create the most cost-effective solution for the consumer," said Whitmore. He initially explored offshoring part of Taza's manufacturing to Canada to benefit from USMCA terms, but decided against it given the significant investment of both money and time that would require, in a volatile business environment. "Right now, the environment is so uncertain that we're just hunkering down and hoping this will pass," Whitmore said. "A lot of us business owners are kind of frozen." Customs data compiled for Reuters by Trade Data Monitor (TDM) shows Canada's chocolate exports to the U.S. grew by 10% in volume terms in the five months to end-May, indicating some Canadian manufacturers are taking advantage of the opportunity created by tariffs. Companies benefiting are mostly Canadian and Mexican contract chocolate makers, or multinational contractors like Barry Callebaut that have a significant footprint in Canada and Mexico, industry sources said. Barry Callebaut, which has just under half its North America chocolate factories in Canada and Mexico, declined to comment. Its CEO Peter Feld said at its July post-results conference call: "On tariffs ... we have operations in the U.S., we have operations in Canada, we have operations in Mexico. So we can actually navigate this environment in the right way." Contract chocolate firms produce raw chocolate that U.S. factories add ingredients to and sell as American chocolate. Tariffs - a pillar of Trump's "America First" economic agenda - come at a delicate time for U.S. chocolate makers as consumers are already buying less after absorbing double-digit inflation over the past several years. In chocolate specifically, prices have risen sharply as cocoa tripled in value to hit record highs in the first four months of last year, and remains well above historical averages because of adverse weather and disease in top growers Ivory Coast and Ghana. Under pressure from rising input costs, Hershey earlier this month rolled out double-digit price hikes across its confectionary products like Reese's cups to retailers like Walmart and Kroger. Cocoa accounts for about 30-50% of the cost of a bar of chocolate. Hershey said its recent price hikes were not related to tariffs. Taza has raised its wholesale prices by 10% since a year ago, and the price of its chocolate bars on its website rose in June to $6.99 from $5.99 previously, but Whitmore also said tariffs would cause further price hikes. Because cocoa can't be sourced domestically, Hershey said in May it is "engaging with the U.S. government to seek an exemption" for cocoa. It declined to comment on whether it was counting on imports from its Canada and Mexico plants to help mitigate tariff costs. M&Ms maker Mars, which said Tuesday it is investing $2 billion in its U.S. manufacturing, including chocolate, has not changed its sourcing structure and continues to make 94% of its U.S. products locally. A Lindt spokesperson said the Lindor truffle maker will decide on possible changes to its sourcing after August 1. Paolo Quadrini, director general of Mexican chocolate and candy association Aschoco Confimex, said U.S. tariffs are "creating new opportunities for Mexican companies." "The sentiment among companies and entrepreneurs, as well as requests from U.S. chocolate companies to manufacture in Mexico, is real and has been increasing," he said. The chocolate market in the U.S., the world's top chocolate consumer, is worth $25-30 billion, according to investment bank TD Cowen, and imports from top supplier Canada account for about 10% of that total, while those from No. 2 supplier Mexico account for some 2.5%. Tareq Hadhad, CEO of mid-sized Nova Scotia-based chocolate maker Peace by Chocolate said tariffs had largely prompted Canadian and American firms to opt for locally produced goods but that contract chocolate makers in Canada had benefited from the new trade dynamic. "It's an advantage for them," he said. - Reuters
