Trump said the levy on Canadian cars would rise from 25 per cent to 50 per cent on 1 January. Sheinbaum kept Marcelo Ebrard in Washington to press for lower Mexican steel, aluminium and car duties.
On Monday Trump said he would raise the levy on Canadian cars, trucks and auto parts from 25 per cent to 50 per cent as of 1 January. The move followed the collapse of trade talks between the two countries late last week. Prime Minister Mark Carney called the threat unsurprising, accused Trump of wanting to destroy Canada's auto industry, and said Ottawa would return to the table only if Washington came with the right attitude.[1]
Canada walked away on Friday night, moments before a US deadline that added a 50 per cent levy on nearly 20 billion dollars of Canadian imports. Ottawa's retaliatory tariffs take effect on 8 September. Carney also announced 11 billion Canadian dollars for six icebreakers at a Quebec shipyard.[1]
Mexican President Claudia Sheinbaum said on Monday she was optimistic about reaching a trade agreement with Trump, just after negotiations between the United States and Canada collapsed. Economy Minister Marcelo Ebrard stays in Washington for several days to try to lower the 50 per cent US tariff on Mexican steel and aluminium and the 25 per cent duty on cars. Sheinbaum told reporters she hoped to reach an agreement and was optimistic one can be reached. The breakdown with Ottawa was followed by a 50 per cent US levy on about 20 billion dollars of Canadian goods, and by Trump saying he would double tariffs on Canadian cars and parts from next year.[2]
