U.S. president Donald Trump’s 25% tariffs on steel and aluminum imports have come into effect, adding to trade tensions.
In retaliation, Canada has announced 25% tariffs on $20 billion worth of U.S goods which will come into effect on March 13th.
In retaliation, Canada has announced 25% tariffs on $20 billion worth of U.S goods which will come into effect on March 13th.
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NewsTranscript
00:00Well, that's right. Good morning from New York. According to economists and at least
00:04one group representing these industries, the tariffs are likely to be felt by everyday
00:09American consumers. Firstly, steel and aluminium goes into many everyday items used by Americans.
00:16Things like building products to cans for food, beer, paints, as well as things like
00:22kitchen utensils. The increased cost of importing steel and aluminium, therefore, could be passed
00:28on to American consumers who use those products. If we consider where outside of the U.S. these
00:32tariffs are likely to be felt, Canada is the largest supplier of both steel and aluminium
00:38to the U.S.A., but it will also affect countries like Brazil, Mexico, South Korea, and Vietnam.
00:44In response to this, Europe has announced, as you mentioned, tariffs on up to 28 billion
00:49dollars worth of goods coming from the United States, and in the last few moments, Canada
00:53has announced retaliatory tariffs as well. Now, some U.S. steel and aluminium companies
00:58in the U.S., it has to be said, are actually in favor of the tariffs. The chief executive
01:03of one company this morning told the New York Times that the new tariffs will close the
01:07loopholes back up and enable us to begin investing again and bring more production back to the
01:13United States. So, varied opinions on this, but as I pointed out, this is likely to cost
01:17American consumers, according to economists. President Trump backing off on increasing
01:23Canadian tariffs even further. Admittedly, it's a mixed picture, but what is it doing
01:29to investor confidence from what you can see there? It has to be said that investor confidence
01:38has been shaky in recent weeks as various tariffs have been imposed, but also because
01:43of what could be described as a sense of confusion at the moment with what feels like
01:48an on-again, off-again approach to the implementation. For example, the tariffs imposed on Canada
01:54and Mexico last week, 25 percent, were largely peeled back, and then the steel and aluminium
01:59tariffs that Mr. Trump threatened yesterday were going to be 50 percent for Canada before
02:04peeling that back to 25 percent, which was implemented this morning. However, there is
02:09some positive news for investors today. The new CPI data here in the U.S. shows that prices
02:15for goods and services moved up less than expected last month, putting the annual inflation
02:21rate at 2.8 percent, down from 2.9 percent, and the stock market has been open for more
02:26than half an hour here in the U.S. this morning. In New York, if we take a quick look, the
02:31Dow Jones is down, but only slightly, 125 points. The S&P 500 is up almost half a percent,
02:39and the NASDAQ is up 1.12 percent today. After that CPI data was released, the White House
02:45has put out a statement praising President Trump for reducing inflation.