The White House told reporters from CBN and CNBC that the new 10% tariff applied to Mexico and Canada — the US’s second and third-largest trading partners.
This is important because USMCA compliant goods are currently at 0% rates and others are at 25% based on fentanyl tariffs.
However, now others are saying the initial reports are wrong. The CBC’s Katie Simpson now reports:
Despite what we’ve heard from the White House, CBC News is learning that the initial information about the 10% baseline tariff applying to Canada may not be accurate, and Canadian officials are waiting to see the text.
We’re going to have to wait and see. I continue to assume that USMCA-covered goods will be exempted but this entire state of play is amateur-hour.
This article was written by Adam Button at www.forexlive.com.