Trump targets Canadian trade: New tariffs on lumber and dairy
President Donald Trump announced the possibility of imposing new tariffs on Canadian lumber and dairy products. According to CNN Business, Trump accused Canada of unfair trade practices, highlighting a 250% tariff on American dairy products.
Trump stated that the new tariffs could be introduced as early as this Friday. The President emphasized that the United States will respond to Canadian tariffs in kind.
- Canada has been ripping us off for years on lumber and on dairy products - said Trump at the White House. - We’re going to charge the same thing. It’s not fair. It never has been fair, and they’ve treated our farmers badly - he added.
Market reactions
The announcement of new tariffs caused uncertainty in the markets. After an initial drop, the Dow Jones index rose by 0.1%, while the S&P 500 and Nasdaq saw slight declines. Michael Block, a market strategist at Third Seven Capital, noted that Trump's trade policy creates confusion among investors.
The new tariffs could exacerbate economic issues in the U.S., such as rising unemployment and inflation. Canadian tariffs on dairy products, including a 241% tariff on milk, have long been opposed by American farmers. Senator Tammy Baldwin from Wisconsin criticized the trade panel's 2023 decision that supported Canada.
For several weeks, Trump has been criticizing Canadian tariffs on American lumber. Experts warn that the new tariffs could increase home building costs in the U.S. America imports about 30% of its lumber from Canada, and additional tariffs could deepen the housing availability crisis.
