TrueValueMetrics ... Impact Accounting for the 21st Century

Date: 2025-07-04 Page is: DBtxt003.php txt00028594

TRUMP TRUMP'S TRADE POLICY FIASCO Fastepo: Canada’s Furious Response to TRUMP: Plan to Crush 50% Tariffs Unveiled: Bluff or Heavy Hit? PLAY YOUTUBE VIDEO Original article: https://www.youtube.com/watch?v=rrPRh8ODRdM Peter Burgess COMMENTARY Peter Burgess
Canada’s Furious Response to TRUMP: Plan to Crush 50% Tariffs Unveiled: Bluff or Heavy Hit? Fastepo 231K subscribers Jun 2, 2025 No description has been added to this video. Transcript 0:03 on May 30th at a rally in Pennsylvania President Donald Trump announced that he would double existing US tariffs on imported steel and aluminum from 25% to 50% effective June 4th trump stated that the higher duties would further strengthen the steel industry in the United States and reduce reliance on foreign producers especially China trump's rationale centered on bolstering domestic metal production and securing American jobs during his remarks he highlighted a 14.9 billion partnership between Nippon Steel and US Steel asserting that it would preserve and expand US steel capacity without resulting in significant layoffs he argued that such measures were necessary to protect national security and ensure the viability of US manufacturers canada had a strong response to President Trump's tariffs particularly from the Minister of Industry before exploring Melanie Jolie's remarks in 1:01 detail let's first take a closer look at how other US allies reacted the announcement prompted strong objections from US trading partners worldwide canada's Chamber of Commerce swiftly condemned the tariff increase as antithetical to North American economic security 'unwinding the efficient competitive and reliable crossber supply chains like we have in steel and aluminum comes at a great cost to both countries,' Candace Lang president of the chamber said in a statement on Saturday the European Commission declared that Europe stands ready to respond in kind this decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic a European Commission spokesperson said Canada's United Steel Workers Union described the move as a direct assault on Canadian industries and workers the EU is prepared to impose counter measures including in response to the latest US tariff increase 2:00 australia's center-left government also criticized the tariff hike with trade minister Don Ferrell labeling it unjustified and not the act of a friend financial markets reacted immediately shares of major US steel producers such as Cleveland Cliffs surged by over 26% in postmarket trading upon hearing the news reflecting anticipated benefits from higher domestic prices conversely South Korean steel exporters saw significant declines posco and Hyundai steel shares fell as investors braced for tighter US import conditions and Indian metal stocks including Tata Steel dropped by up to 2.5% amid fears of reduced export opportunities within the United States responses were mixed domestic steel industry representatives largely applauded the move with Cleveland Cliff's CEO noting that higher tariffs would help level the playing field for US producers however business groups and economists warned that downstream industries 3:01 automotive appliance and construction could face sharply higher input costs potentially negating any short-term gains internationally the European Union strongly regrets the decision and has threatened to reinstate countermeasures by mid July if no resolution is reached in Brussels an EU spokesperson emphasized that the block had paused its own retaliatory measures in April in good faith to facilitate negotiations but warned that the 50% increase would severely disrupt transatlantic trade if left unressed in the United Kingdom Steel UK Director General Gareth Stace warned that the tariff increase would be a body blow to an export market worth roughly 400 million pounds annually british officials urged swift clarification to safeguard a pending US UK trade deal that had included carveouts for steel while industry groups noted that the decision could lead to order cancellations and delayed 4:00 investments in modern high-grade production for export to the US south Korea the fourth largest steel exporter to the US has been notably impacted the Ministry of Trade labeled the tariff hike as unjustified and convened emergency meetings with major steel producers including Pasco and Hyundai Steel to formulate a response strategy despite prior efforts to limit exports and avoid scrutiny South Korea's steel shipments to the US increased by 12% in April compared to the previous year following the tariff announcement shares of POSCO Holdings and Hyundai Steel fell by 2.4% and 2.6% 6% respectively canada's response was particularly sharp on June 1st Canada's Minister of Industry Melanie Jolie addressed recent developments stemming from announcements made by the White House speaking from the North American Aluminium Summit in Montreal Jolie emphasized that while the US statements are announcements and we will see 5:01 whether they will become an executive order her office is already preparing scenarios in close collaboration with both federal and provincial partners she confirmed that the prime minister will be with the provinces and territories premers tomorrow in Saskatoon to further coordinate Canada's response she also highlighted ongoing engagement with domestic stakeholders we've been in contact also with industry leaders and labor she reiterated that Canada is executing our plan which rests on three pillars first we will make sure that in national projects Canadian steel and aluminum is used second we will build a defense industry in this country that will rely on Canadian steel and aluminum creating therefore jobs thirdly we will diversify our trade making sure that we can create jobs by partnering with other countries the speech took place on Sunday at the Fairmont Queen Elizabeth Hotel in downtown Montreal during the 6:00 annual summit where industry leaders 6:03 policy makers and producers convened to 6:05 discuss North American aluminium trade 6:07 and competitiveness 6:10 jolie underscored that Canadian 6:11 aluminium workers and companies were 6:13 already experiencing uncertainty as US 6:16 tariff threats 6:17 loomed before we delve into the details 6:20 of this news may we ask just one thing 6:22 click the like button it signals to the 6:25 algorithm that this conversation matters 6:27 and leave a comment to sustain the 6:29 debate whether you agree disagree or 6:31 have another view entirely 6:34 if you have not yet done so please 6:36 subscribe and activate notifications to 6:38 stay 6:39 updated thanks for being part of this 6:41 now let's keep 6:43 going why did countries react so quickly 6:45 to this decision and how could US import 6:48 duties affect economies around the world 6:50 to better understand this let's take a 6:52 closer look at the United States steel 6:54 and aluminum imports 6:57 the United States continues to rely 6:58 heavily on imports of steel and aluminum 7:00 to meet domestic demand despite efforts 7:03 to bolster local 7:04 production in 2024 US steel imports 7:08 reached 28.86 million net tons of which 7:11 22.5 million net tons were finished 7:14 products the total value of these 7:17 imports amounted to nearly 33 billion 7:20 likewise imports of crude and 7:22 semi-fabricated aluminum totaled 4.8 8 7:24 million metric tonses with an additional 7:27 660,000 metric tonses of scrap 7:30 translating to a combined import value 7:32 of approximately 28.3 billion 7:36 although recent tariff measures have 7:38 aimed to encourage domestic sourcing 7:40 both metals remain crucial inputs for a 7:43 variety of industries underscoring the 7:45 ongoing tension between protecting local 7:47 producers and ensuring affordable 7:49 supplies for downstream 7:52 sectors within the steel sector Canada 7:54 remains the leading supplier followed by 7:57 Brazil Mexico South Korea and Vietnam 8:01 in 2024 Canadian shipments to the US 8:04 accounted for roughly 23% of total 8:06 import value while Brazil and Mexico 8:09 also contributed significant volumes 8:11 despite fluctuations compared to 8:14 2023 interestingly Vietnam's exports 8:17 surged by more than 140% yearover-year 8:21 reflecting shifting trade patterns and 8:23 competitive pricing more recently April 8:26 2025 data indicate a slowdown total 8:29 steel imports declined to 2.07 million 8:31 net tons with finished steel dipping to 8:34 1.61 million net tons down 17% and 12% 8:38 respectively from 8:39 March this pullback suggests that US 8:42 steel makers may be increasing domestic 8:44 output or that tariff impacts are 8:46 beginning to constrain volumes 8:49 alongside these national figures product 8:52 level shifts reveal that categories such 8:54 as hot rolled sheets tin plate and wire 8:57 rods experienced notable month overmonth 9:00 increases toward the end of 2024 9:03 highlighting growing demand for 9:04 automotive and construction 9:07 applications similarly aluminum imports 9:09 remain a cornerstone of US manufacturing 9:12 in 2024 nearly half of the aluminum used 9:15 domestically was sourced from abroad as 9:17 primary US production fell from 750,000 9:20 tons in 2023 to 9:23 676,000 tons in 9:26 2024 canada again dominated exports 9:29 supplying more than half of total US 9:31 primary aluminum imports while the 9:33 United Arab Emirates and China ranked as 9:36 the next largest sources by 9:38 volume by value Canada accounted for 9:42 over 40% of total aluminum import 9:44 dollars with China and Mexico also 9:46 contributing 9:48 meaningfully despite efforts to ramp up 9:50 domestic output the ongoing gap between 9:53 US consumption and local capacity has 9:55 kept import levels elevated moreover 9:58 recent tariff adjustments most notably 10:00 the doubling of section 232 duties to 10:03 50% in May 2025 have inflamed supply 10:06 chain concerns driving up costs for end 10:09 users and creating uncertainty about 10:11 future sourcing 10:13 patterns now let's compare the price 10:16 quality and transportation differences 10:18 between Canada as the primary supplier 10:21 and other steel and aluminum exporters 10:23 to the United States 10:25 we've drawn on various resources to 10:27 compile this data so if you notice any 10:29 discrepancies or contradictions with 10:31 other sources please let us know in the 10:33 comments with that in mind let's dive in 10:38 canadian mills many of which are 10:40 vertically integrated facilities 10:41 operated by producers like Arcelor 10:44 Middle Defasco in Hamilton Ontario and 10:46 Stelco in Hamilton manufacturer steel to 10:50 stringent North American standards such 10:52 as ASM and 10:54 CSA as evidence of this US trade remedy 10:58 investigations have repeatedly found 10:59 that Canadian steel wire rod is 11:02 sufficiently similar to US-made wire rod 11:04 that in 2024 the US International Trade 11:07 Commission concluded revoking 11:09 anti-dumping duties on Canadian wire rod 11:11 would not cause material injury to US 11:13 producers 11:15 likewise Canadian corrosion resistant 11:17 sheet and plate have historically met or 11:19 exceeded quality threshold set by 11:21 purchasers who often rate Canadian CO 11:24 products as comparable or superior in 11:26 consistency and compliance with industry 11:28 tolerances particularly when contrasted 11:31 with imports from older mills in Asia or 11:33 South America 11:35 in comparison while Brazilian and South 11:38 Korean producers such as Gerdau and 11:40 POSCO supply large volumes of hot rolled 11:42 and cold rolled coil to the US some US 11:45 buyers have noted that products from 11:47 those mills especially certain flat and 11:49 structural grades occasionally carry 11:52 higher levels of residual impurities 11:54 like sulfur and phosphorus than typical 11:56 Canadian grades leading to minor 11:58 adjustments in downstream processing to 12:00 achieve required mechanical properties 12:04 despite generally high perceived quality 12:06 Canadian steel is often priced above 12:08 that from more distant 12:09 suppliers in 2024 US imports of iron and 12:14 steel from Canada totaled 7.69 billion 12:17 for approximately 6.56 million net tons 12:21 implying an average delivered cost of 12:23 about 12:25 1,173 per ton 12:28 by contrast global hot rolled coil 12:30 benchmark prices averaged roughly $621 12:33 per ton in early 2025 with US domestic 12:36 hot rolled coil fetching around $912 per 12:39 ton nearly 47% above the global 12:42 benchmark after the imposition of 12:44 section 232 12:46 tariffs suppliers from Brazil and South 12:49 Korea often bid on the basis of lower 12:51 millgate prices sometimes $50 to $100 12:54 per ton below Canadian producers but 12:56 freight insurance and US anti-dumping 12:59 duties raise their delivered costs 13:01 closer to and in some cases above 13:03 Canadian 13:04 levels indeed after accounting for ocean 13:07 freight and logistics Brazilian and 13:09 South Korean hot rolled coil is 13:11 typically within 5% of Canadian 13:13 delivered prices narrowing the advantage 13:15 gained from lower base prices abroad 13:19 consequently many US buyers view 13:21 Canadian steel as offering a balance of 13:23 reliability and competitive cost 13:25 especially when shorter transit times 13:27 and reduced foreign exchange risk are 13:29 valued for example while a shipload of 13:32 Brazilian hot rolled coil must cross the 13:34 Atlantic approximately 10 to 14 days in 13:37 transit and clear customs at a Gulf 13:39 Coast port Canadian coil can arrive by 13:42 truck or rail to Midwest service centers 13:44 in as little as 2 to 4 days 13:47 this time advantage combined with fewer 13:49 currency and duty variables frequently 13:51 offsets any marginally higher per ton 13:53 price from Canadian 13:55 mills canada's aluminum industry is 13:57 similarly known for producing 13:58 highquality lowcarbon footprint metal 14:02 more than 90% of Canadian primary 14:04 aluminum is generated in Quebec and 14:06 British Columbia using hydroelectric 14:08 power resulting in an average of roughly 14:11 4,000 kwatt hours per metric ton of 14:13 electricity consumption which is below 14:15 the global average for smelting 14:18 by contrast most Chinese and Middle 14:20 Eastern aluminum smelters rely on coal 14:22 or natural gas fired power which can 14:25 introduce marginally higher dissolved 14:27 hydrogen and trace silicon impurities 14:29 factors that in certain high-end 14:31 aerospace or specialty foil applications 14:34 necessitate additional degassing or 14:36 alloying steps 14:38 as a result many US buyers prefer 14:40 Canadian primary aluminum often traded 14:42 under the AL-14 series for feed stock 14:45 valuing its consistently low impurity 14:48 profile and lower greenhouse gas 14:50 intensity nevertheless delivered 14:52 Canadian aluminum typically commands a 14:54 premium over competing supplies from 14:56 China the UAE and 14:59 Mexico in 2024 US imports of aluminum 15:02 from Canada were valued at 11.22 $22 15:05 billion for approximately 3.2 million 15:09 metric tonses implying a delivered cost 15:11 near 15:13 $3,57 per ton about 10 to 15% above the 15:16 average unit value of Chinese aluminum 15:18 imports which based on US census data 15:21 carried a typical unit value of roughly 15:24 $2,450 to 15:26 $2,700 per ton during the same period 15:30 part of this premium reflects Canadian 15:32 producers additional green attributes 15:34 hydroelectric power inputs yield an LCA 15:37 advantage and closer proximity to major 15:39 Midwest fabricators which reduces 15:41 transportation and inventory carrying 15:44 costs in contrast United Arab Emirates 15:47 sourced aluminum can be 5 to 10% cheaper 15:50 at the mill owing to lowcost natural gas 15:52 and economies of scale at giants like 15:54 Emirates Global Aluminium however ocean 15:57 freight to US ports and the so-called 15:59 Midwest premium the search charge for 16:01 delivery within the US interior 16:03 frequently pushes total landed cost for 16:05 UAE metal back toward or even above 16:08 Canadian levels 16:10 moreover during periods of US tariff 16:12 uncertainty such as the leadup to the 16:14 March 2025 tariff 16:17 increase Middle Eastern aluminum exports 16:20 to the US spiked suggesting that some 16:22 buyers briefly absorbed higher ocean 16:24 freight to lock in lower base mill 16:26 pricing 16:28 in early March 2025 for instance US 16:31 imports of aluminum from the UAE surged 16:33 to nearly 16:35 68,560 metric tonses over four times the 16:38 volume from March 16:40 2024 even though Canadian shipments 16:42 remain the single largest source 16:44 accounting for roughly 70% of volume 16:48 consequently while the Canadian product 16:50 is regarded as higher quality and lower 16:52 carbon it typically costs $300 to $500 16:56 more per ton delivered than comparable 16:58 Middle Eastern or Mexican metal 17:00 depending on market conditions and 17:01 tariff 17:02 levels export transportation 17:05 modes because Canada shares a 17:08 5,525m land border with the United 17:11 States the majority of Canadian steel 17:13 and aluminum shipments move by surface 17:15 transport 17:17 in 2022 trucks carried 55% of US Canada 17:21 freight by value rail accounted for 16% 17:24 pipelines 18% and vessel or air modes 17:26 the remaining 17:28 11% specifically steel often travels by 17:32 rail from Ontario or Quebec mills via 17:35 Canadian National or Canadian Pacific 17:37 tracks directly to Chicago Detroit or 17:40 other Midwest rail terminals local 17:42 distribution then proceeds by truck to 17:45 regional service 17:46 centers likewise aluminum ingots and 17:49 billets frequently ship via specialized 17:51 covered hopper rail cars or interotal 17:54 containers from Quebec smelters through 17:56 the St lawrence Great Lakes system after 17:58 which they are destined for Midwest flat 18:00 rolled aluminum mill service centers 18:03 in both cases transit times are measured 18:05 in 2 to 6 days and freight rates average 18:08 4 to 5 cents per revenue ton mile for 18:10 Canadian rail roughly 10 to 15% below 18:13 comparable US rail 18:15 tariffs conversely steel from Brazil or 18:18 South Korea traverses thousands of 18:20 nautical miles by ocean 18:22 freight a typical load of Brazilian hot 18:24 rolled coil sails from the port of San 18:26 Louise or Santos to the US Gulf Coast 18:28 Houston or New Orleans taking about 20 18:30 to 25 days 18:33 once discharged at a coastal port the 18:35 coil then shifts to rail or truck adding 18:38 another 5 to 7 days to reach central US 18:41 destinations the combined ocean rail 18:43 transit and handling costs add $100 to 18:46 $150 per ton to millate prices even 18:49 before factoring in section 232 or 18:52 anti-dumping duties which can 18:54 effectively push delivered cost to as 18:56 much as $1,100 per ton during high 18:59 tariff periods 19:01 south Korean suppliers face a similar 19:03 pattern a voyage from Pohhang or Olsen 19:05 to Long Beach or Savannah takes roughly 19:07 15 to 18 days clearing customs and 19:10 railard congestion on the West Coast 19:12 adds 3 to 5 days more and inland rail 19:15 transportation can tack on another 80 to 19:17 $120 per ton 19:20 consequently South Korean steel often 19:22 arrives in the US at a final landed cost 19:24 comparable to or slightly above Canadian 19:27 steel even when base millill prices in 19:29 Korea are among the lowest 19:31 globally for aluminum Canadian shipments 19:34 by rail from Quebec to the US Midwest 19:36 average 4 cents per ton mile whereas 19:39 typical ocean freight from the UAE to 19:41 the Gulf is roughly $25 to $30 per 19:44 metric ton for a 20 to 30-day voyage 19:46 after inland trucking total logistics 19:48 costs for UAE aluminum exceed those for 19:51 Canadian product by about $100 to $150 19:54 per ton chinese aluminum contends with 19:58 even higher sea freight often $ 35 to 20:00 $40 per ton to US West Coast plus 20:03 anti-dumping duties resulting in Chinese 20:06 delivered costs that sometimes undercut 20:08 Canadian metal only during short windows 20:10 of tariff exemptions or when Midwest 20:13 premiums spike unexpectedly 20:16 let's wrap up the video by looking ahead 20:18 at the relationship between the two 20:19 nations in the coming 20:21 years economically Canadian exports to 20:24 the United States account for roughly 20:26 20% of Canada's GDP rendering the 20:28 economy particularly susceptible to US 20:31 tariff policy 20:33 independent analyses estimate that 20:35 sustained tariffs could reduce Canada's 20:37 GDP by 2.5 to 3% over the next year with 20:41 Canadian households facing additional 20:43 annual costs of around 20:45 $1,900 due to higher import prices and 20:48 supply chain disruptions 20:51 while the US economy is less dependent 20:53 on Canadian trade American households 20:55 could still lose about 20:57 $1,300 per year in disposable income and 21:00 gasoline prices could rise by 30 cents 21:03 to 70 cents per gallon due to energy 21:05 tariffs on Canadian crude 21:08 tariffs on steel and aluminum strike at 21:10 Canada's largest non-petroleum export 21:12 sectors over $15 billion worth of steel 21:15 and aluminum shipped to the US in 2024 21:18 and threaten tens of thousands of jobs 21:20 in mining smelting and downstream 21:23 manufacturing since these metals feed 21:26 integrated supply chains in the 21:27 automotive and aerospace industries 21:29 disruptions risk slowdowns in US plants 21:32 in Michigan and Ohio potentially leading 21:34 to layoffs on both sides of the border 21:37 higher tariffs on raw materials and 21:40 intermediate goods also feed into 21:42 consumer price indices a recent Black 21:44 Rockck analysis warned that prolonged 21:46 protectionism could add 0.3 to 0.4 21:50 percentage points to US consumer price 21:52 inflation in 2025 if no offsets occur 21:56 in Canada where consumer price growth 21:58 already exceeds the Bank of Canada's 2% 22:01 target further supplier price shocks may 22:03 compel the Bank to maintain higher 22:05 interest rates for longer slowing 22:07 mortgage markets and household 22:09 spending global markets have reacted to 22:12 the US Canada escalation with caution on 22:15 June 2nd 2025 Asia-Pacific indices fell 22:19 japan's nick down 1.3% Hong Kong's Hang 22:22 Sang down 22:24 2.5% while US stock futures wavered amid 22:27 fears that steel and aluminum tariffs 22:29 might extend to other 22:30 partners private equity deal making also 22:33 slowed globally as uncertainty over 22:35 North American trade policies increased 22:37 with Q2 2025 buyout deal values forecast 22:40 to drop roughly 16% compared to 22:44 Q12025 if tariffs remain at current 22:47 levels through late 2025 Canadian 22:49 exporters will seek to redirect more 22:51 shipments toward markets such as the 22:53 European Union or ASEAN countries 22:56 leveraging agreements like the 22:57 comprehensive and progressive agreement 22:59 for trans-pacific partnership CPTP and 23:02 Canada EU trade agreement 23:05 CEDA however capacity constraints and 23:08 geographic realities mean that US 23:10 markets will remain Canada's primary 23:11 destination so even partial redirection 23:14 is unlikely to fully offset losses on 23:17 the US side manufacturers relying on 23:19 Canadian inputs notably in auto 23:21 machinery and energy will face higher 23:24 production costs prompting some to 23:26 reshore or diversify procurement toward 23:28 Mexico or non-North American suppliers 23:32 the Organization for Economic 23:34 Cooperation and Development OECD has 23:37 warned that aggressive reshoring in 23:38 response to trade tensions could reduce 23:41 global trade by up to 18% and shrink GDP 23:44 by as much as 12% in major economies if 23:47 protectionism 23:49 persists from a defense and security 23:51 standpoint the US and Canada have long 23:54 cooperated through the North American 23:56 Aerospace Defense Command NORAD relying 23:59 on joint procurement of military 24:01 hardware that depends heavily on steel 24:03 and aluminum supplies from both 24:06 countries with a 50% levy on these base 24:09 materials defense contractors on both 24:11 sides face increased input costs 24:13 potentially delaying procurement cycles 24:15 for upgrades to NORAD infrastructure and 24:17 joint training exercises 24:20 reflecting growing distrust in US policy 24:23 reliability Canada began exploratory 24:25 talks with the European Union in March 24:27 2025 to lessen its dependence on 24:30 Americanmade fighter 24:32 jets specifically Canada is reviewing 24:35 its existing contract for 88 US 24:38 manufactured F-35s and examining 24:40 European alternatives such as Sweden's 24:42 Saab Gripen including proposals for 24:45 partial domestic assembly 24:47 choosing a European platform would 24:49 signal a strategic diversification aimed 24:51 at insulating Canadian defense readiness 24:54 from US Canada trade 24:56 disputes beyond hardware US Canada 24:59 collaboration on border security 25:01 particularly countering fentanyl 25:02 trafficking has been cited by the US 25:05 administration as justification for the 25:07 March tariffs 25:09 however Canadian officials argue that 25:11 cooperative law enforcement programs 25:13 such as the integrated border 25:15 enforcement teams have been effective 25:17 and that punitive tariffs do not address 25:19 the root causes of crossber 25:22 smuggling increased bilateral mistrust 25:24 may hamper joint intelligence and 25:26 operational initiatives forcing both 25:28 countries to invest more in unilateral 25:30 surveillance and enforcement measures 25:32 thereby diverting resources from broader 25:34 NATO 25:35 commitments geopolitically the steep 25:38 tariffs and reciprocal retaliation mark 25:41 one of the most severe rifts in modern 25:43 USC Canada 25:44 relations polling in Canada indicates a 25:46 surge in nationalism by May 2025 25:50 Canadian sentiment toward US leadership 25:52 had declined sharply accompanied by 25:53 boycots of Americanmade goods and public 25:56 disapproval of Make America Great Again 25:58 iconography as US ties weakened Canada 26:01 is accelerating engagement with 26:03 alternative trading blocks following 26:05 King Charles III's visit on May 26th 27 26:08 which was partly framed as a 26:10 reaffirmation of Canadian sovereignty 26:12 Canada has moved to deepen ties with the 26:14 EU exploring ways to increase trade in 26:16 high value sectors such as aerospace 26:19 clean energy technology and agra food 26:22 exports simultaneously Ottawa is working 26:25 to upgrade its CPTP membership and seek 26:28 new bilateral arrangements with 26:29 countries such as South Korea and Japan 26:31 to compensate for lost US market share 26:35 the USMCA which replaced NAFTA in 2020 26:38 included chapters on labor environment 26:40 and dispute resolution to modernize 26:42 trade 26:43 relations with sustained tariffs on key 26:46 sectors canada has invoked USMCA dispute 26:49 settlement provisions and requested 26:50 panels on steel and aluminum 26:53 measures if these panels recommend 26:55 rolling back tariffs the US could 26:57 legally challenge or delay compliance 27:00 lengthening the conflict cooperation on border security operations such as efforts to curb illegal migration and the crossber drug trade may become transactional rather than trustbased weakening effectiveness over time allied countries in Europe and Asia are monitoring the US Canada breakdown closely the EU has signaled it may impose or expand retaliatory measures if US tariffs are not rescended by mid July 2025 risking a broader transatlantic trade conflict in Asia economies like South Korea and Vietnam face direct exposure because higher US steel tariffs make North American markets less competitive driving steel toward alternative buyers and depressing global steel prices prompting non-N North American players to factor US Canada tensions into their strategic planning for 2025 and beyond several scenarios could unfold in a short-term escalation lasting through fall 2025 canada is likely to maintain 28:00 or expand retaliatory tariffs on US goods such as energy agricultural and industrial products further exacerbating inflation on both sides joint defense exercises could be postponed or scaled back due to budgetary reallocations and political push back while investments in alternative supply chains for example moving automotive production away from the Great Lakes region to Mexico or Europe would accelerate leading to lasting shifts in North American manufacturing footprints in a midterm deescalation spanning late 2025 to early 2026 heightened economic pain manifesting in job losses among Canadian manufacturers and US fertilizer dependent farming communities may provoke domestic political backlash thank you for watching as an independent channel we don't have corporate backing we rely on your support to keep going if you found this video valuable please give it a thumbs up and leave a comment below it really helps more people find our 29:01 work thank you so much for being part of our community check out the next video on your screen we picked it just for you Fastepo 231K subscribers

SITE COUNT