President Trump's trade-war threat against Canada
President Trump dialed back trade-war threat against Canada, downplaying risk of recession. Markets rattled as metal levies set to hit. Trump's mercurial tariff decisions have spooked investors. He sees tariffs as a way to bring companies back to the US.
Key Points
- Trump threatened to double duties on Canadian steel and aluminum, then retreated back to 25% rate
- Markets already down amid concerns of a recession
- Trump sees tariffs as a way to encourage companies to move operations to the US
Pros
- Tariffs could potentially bring manufacturing jobs back to the US
- Trump's focus on speedy approvals and environmental regulations could boost domestic production
Cons
- Tariff threats have rattled markets and spooked investors
- Retaliation from other countries could hurt US exporters and consumers