The Ontario Prime Minister, Doug Ford, agreed to suspend his export tariffs announced on the electricity produced in the Ontario aimed at the US. UU. After the US Secretary of Commerce. UU., Howard Lutnick, accepted emergency commercial conversations with Canada.
The energy taxes of the PM Ford of Ontario were announced on Tuesday morning as a direct and immediate retaliation to the US president, Donald Trump, who promised through a publication on social networks to impose a duplicate tariff of 50% on all the goods of Canadian steel and aluminum imported to the US.
The proclamations on social networks of President Trump sent the markets to a descending spiral, and Canada’s reaction was fast and immediate. The complaints of the Trump administration, delivered through a statement from the White House, that the statements of the PM Ford of Ontario were “egregias and insulting” fell largely into deaf ears while the rest of Trump’s team hastened to clean the disaster.
FAQS tariffs
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
