Latest news with #UnitedStates-Mexico-CanadaAgreement-compliant
Yahoo
11-07-2025
- Business
- Yahoo
What goods may (and may not) be affected by Trump's 35% tariff on Canada
President Trump surprised markets late Thursday with a letter announcing a 35% tariff on Canadian goods, but some notable industries such as energy could get some relief from the new threat. Guidance offered Friday morning by the White House is that this 35% rate — if Trump follows through — will increase the rate on goods currently facing a 25% duty but that key carveouts are likely to be maintained. A White House official told Yahoo Finance that the expectation is that the situation will not change for United States-Mexico-Canada Agreement-compliant goods (which are often exempt from tariffs entirely) as well as for energy products like oil and a fertilizer known as potash (these are key flashpoints that currently see 10% duties). Yet the official stressed that no final deal has been drafted and Trump hasn't made a final decision. Read more: The latest news and updates on Trump's tariffs Trump's letter also made clear that sector-specific tariffs on steel, aluminum, autos, and soon-to-be-implemented copper duties will be excluded from the 35% rate, as those goods already face duties from 25%-50%. It was a capper on a week filled with promises of major new tariffs coming Aug. 1 on countries around the world from Brazil to South Korea as well as the unveiling of those 50% duties on copper. Yet the expected continuation of some carveouts for Canada — as well as an Aug. 1 start date for all these new duties — may provide a measure of relief for markets that retreated Friday morning on the tariff threats as it began to digest Trump's latest surprise. The potential carveout for USMCA-compliant goods is significant, as experts often estimate that those excluded goods under the 2020 agreement make up around 40% of imports from Canada. Oil and the fertilizer potash have also long been keen areas of interest. Americans not only consume Canadian oil, but American refiners often mix crude oil from Canada with American crude oil, leading to fears that a cutoff would create a ripple effect on US production. Likewise, with fertilizer, many agricultural states are highly dependent on the potassium-based potash that comes in from Canada in order to grow their crops. As Iowa Sen. Chuck Grassley put it this spring in a social media post: "I plead w President Trump to exempt potash from the tariff because family farmers get most of our potash from Canada." Any relief may be tempered by the sense that these carveouts are likely to continue but remain on the table in Trump's often renegotiated deals. Indeed, Thursday's letter to Canada from the president ended with a line that has ended all letters this week: "These Tariffs may be modified, upward or downward, depending on our relationship with your Country." Ben Werschkul is a Washington correspondent for Yahoo Finance. Click here for political news related to business and money policies that will shape tomorrow's stock prices
Yahoo
11-07-2025
- Business
- Yahoo
What goods may (and may not) be affected by Trump's 35% tariff on Canada
President Trump surprised markets late Thursday with a letter announcing a 35% tariff on Canadian goods, but some notable industries such as energy could get some relief from the new threat. Guidance offered Friday morning by the White House is that this 35% rate — if Trump follows through — will increase the rate on goods currently facing a 25% duty but that key carveouts are likely to be maintained. A White House official told Yahoo Finance that the expectation is that the situation will not change for United States-Mexico-Canada Agreement-compliant goods (which are often exempt from tariffs entirely) as well as for energy products like oil and a fertilizer known as potash (these are key flashpoints that currently see 10% duties). Yet the official stressed that no final deal has been drafted and Trump hasn't made a final decision. Trump's letter also made clear that sector-specific tariffs on steel, aluminum, and autos and soon to be implemented copper duties will be excluded from the 35% rate as those goods already face duties from 25-50%. It was a capper on a week filled with promises of major new tariffs coming Aug. 1 on countries around the world from Brazil to South Korea as well as the unveiling of those 50% duties on copper. Yet the expected continuation of some carveouts for Canada — as well as an Aug. 1 start date for all these new duties — may provide a measure of relief for markets that retreated Friday morning on the tariff threats as it began to digest Trump's latest surprise. The potential carveout for USMCA-compliant goods is significant as experts often estimate that those excluded goods under the 2020 agreement make up around around 40% of imports from Canada. Oil and the fertilizer potash have also long been keen areas of interest. Americans not only consume Canadian oil but American refiners often mix crude oil from Canada with American crude oil — leading to fears that a cutoff would create a ripple effect on US production. Likewise with fertilizer as many agricultural states are highly depending on the potassium-based potash that comes in from Canada in order to grow their crops. As Iowa Sen. Chuck Grassley put it this spring in a social media post: "I plead w President Trump to exempt potash from the tariff because family farmers get most of our potash from Canada." Any relief may be tempered by the sense that these carveouts are likely to continue but remain on the table in Trump's often re-negotiated deals. Indeed, Thursday's letter to Canada from the president ended with a line that has ended all letters this week: "these Tariffs may be modified, upward or downward, depending on our relationship with your Country." Ben Werschkul is a Washington correspondent for Yahoo Finance. Click here for political news related to business and money policies that will shape tomorrow's stock prices 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
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Business Standard
28-05-2025
- Business
- Business Standard
Trump tariffs a call for nations to consider trade governance reforms
It is time for collective action among like-minded economies rather than be caught in the US tariff turmoil Premium Amita Batra Listen to This Article It is now close to 60 days since 'liberation day' and the subsequent announcement by United States President Donald Trump of a 90-day stay on the implementation of reciprocal tariffs. Notwithstanding this, tariff threats by the US President against not just 'countries of concern' but also allies and domestic firms continue almost on a daily basis. While this uncertain trade policy context makes it difficult to discern trends, some early signs of how global trade is evolving may be worth outlining. First, while the exemption from reciprocal tariffs for United States-Mexico-Canada Agreement-compliant products and value added in case of auto/
