A 50 per cent border tariff took effect while a fuel tax was postponed
Washington began applying 50 per cent tariffs to about 20 billion dollars of Canadian goods. Ireland meanwhile halted September and October fuel-tax increases amid price pressure.
Economics & Markets··Evening
The deadline passed and the 50 per cent tariff took effect
Washington's 50 per cent tariff on about 20 billion dollars of Canadian goods took effect at midnight on Friday. Hockey sticks, building materials, liquors and certain clothing are covered. Prime Minister Mark Carney suspended negotiations after nearly two weeks of talks ended without agreement and said Ottawa would match the tariffs dollar for dollar. The US administration based the measure on Section 338 of the Tariff Act of 1930, a provision that had not been used before.[1]
Ireland postponed two tax steps
Ireland's government will not proceed with the first two stages of restoring full excise duty on petrol and diesel, scheduled for 1 September and 1 October. The September step would have added 9 cent per litre to petrol and 10 cent to diesel; the October step would have added 8 cent to each fuel. The support costs the exchequer 100 million euros a month. The Dáil will meet next Friday for the financial resolution, while the November and December increases remain scheduled.[2]
Two tax instruments reached prices from opposite directions
In the border-tax case, Ottawa enlarged the cost layer on specified imported goods; in Ireland, the government postponed previously scheduled fuel-tax increases. Ottawa's measure operates through foreign trade after bilateral negotiations failed, while Ireland cited the effect of instability in the Middle East on domestic fuel prices. One adds a new cost and the other delays a planned cost increase; the timing and scope of each measure are already defined.[1], [2]
