3 ms·

https://www.retailcouncil.org/u-s-hits-185-nations-with-tariffs-canada-mexico-exempt-under-usmca/ https://www.retailcouncil.org/u-s-hits-185-nations-with-tari..

https://www.retailcouncil.org/u-s-hits-185-nations-with-tariffs-canada-mexico-exempt-under-usmca/ https://www.retailcouncil.org/u-s-hits-185-nations-with-tari... > No new tariffs were announced for Canada. Canada and Mexico’s exemption for USMCA/CUSMA qualifying goods was maintained. However, 25% tariffs on non-USMCA compliant Canadian goods, Canadian steel and aluminum, Canadian autos and parts, and the 10% tariff on Canadian energy exports remain in place.. there are signs that negotiators on both sides are trying to steer Canada-US trade to a more productive process of an expedited renegotiation of the Canada-US-Mexico Trade Agreement (CUSMA). More context on US trade policy: https://news.ycombinator.com/item?id=43589350 https://news.ycombinator.com/item?id=43589350

graeme 2y ago
So the tariffs were calculated based on dividing goods trade deficit by overall goods trade. If you run that formula for Canada and Mexico, the number would be LOWER than the tariffs already imposed. So they had to leave Canada and Mexico off to keep things looking consistent. You can confirm here from USTR stats: https://ustr.gov/countries-regions/americas/canada#:~:text=Canada%20Trade%20Summary&text=U.S.%20goods%20imports%20from%20Canada,(%24926.9%20million)%20over%202023. https://ustr.gov/countries-regions/americas/canada#:~:text=C...
- walterbell 2y ago
  https://www.ft.com/content/96bc1b74-14dd-47ab-8bbd-1add97a2af09 https://www.ft.com/content/96bc1b74-14dd-47ab-8bbd-1add97a2a... > both leaders claim their approaches have helped them this week avoid what Trump calls “liberation day” tariffs.. Mexican officials on Thursday said the strategy had borne fruit and they would focus on getting an even better deal. Economy minister Marcelo Ebrard said: “It's a great achievement, I’d say, from the point of view of where we started not long ago that there would be no exemptions.” .. Mexico remains upbeat, with [President] Sheinbaum on Thursday trying to lure companies to invest in USMCA-compliant production in the country. “We think that with the dialogue we’ve established there are the conditions to have a better deal,” she said.
  - graeme 2y ago
    You've completely ignored what I wrote. The formula the white house used to set tariffs would result in lower tariffs for Canada and Mexico. If both countries were included in the formula Trump would have to cut announced tariffs on both countries. Do you dispute this? It's trivial to calculate.
    - clipsy 2y ago
      You're making the mistake of believing that anyone left in the MAGA camp is arguing in good faith.
    - walterbell 2y ago
      You're disagreeing with statements by the President of Mexico, describing the result of ongoing negotiations? Canada and Mexico share a physical border with USA, which has already resulted in unique (i.e. unrelated to the math of 180+ other countries which don't physically border USA) tariffs tailored to border security goals, under national security emergency directives which overrode USMCA. USMCA has been historically gamed by international manufacturers seeking more favorable terms for products destined to the US market. As stated by the leadership of both Mexico and Canada, USMCA will need to be renegotiated to address issues identified by all three parties, which would then reduce the need to invoke the emergency-power tariffs that have been deployed against 180+ countries.
      - graeme 2y ago
        Yes, because the math provides a much simpler explanation.
        walterbell 2y ago
        Napkin math cannot apply to Mexico and Canada tariffs, because the USMCA (and preceding NAFTA) have long intertwined North American manufacturing supply chains, with components moving back and forth across borders. Even the emergency border security tariffs and counter-tariffs announced earlier this year by US and Canada have since been carefully tailored for specific products and exceptions, as cooler heads prevailed on both sides of the border, to minimize immediate and catastrophic ripple effects across North American manufacturing.

graeme 2y ago

So the tariffs were calculated based on dividing goods trade deficit by overall goods trade. If you run that formula for Canada and Mexico, the number would be LOWER than the tariffs already imposed. So they had to leave Canada and Mexico off to keep things looking consistent. You can confirm here from USTR stats: https://ustr.gov/countries-regions/americas/canada#:~:text=Canada%20Trade%20Summary&text=U.S.%20goods%20imports%20from%20Canada,(%24926.9%20million)%20over%202023. https://ustr.gov/countries-regions/americas/canada#:~:text=C...

walterbell 2y ago
https://www.ft.com/content/96bc1b74-14dd-47ab-8bbd-1add97a2af09 https://www.ft.com/content/96bc1b74-14dd-47ab-8bbd-1add97a2a... > both leaders claim their approaches have helped them this week avoid what Trump calls “liberation day” tariffs.. Mexican officials on Thursday said the strategy had borne fruit and they would focus on getting an even better deal. Economy minister Marcelo Ebrard said: “It's a great achievement, I’d say, from the point of view of where we started not long ago that there would be no exemptions.” .. Mexico remains upbeat, with [President] Sheinbaum on Thursday trying to lure companies to invest in USMCA-compliant production in the country. “We think that with the dialogue we’ve established there are the conditions to have a better deal,” she said.
- graeme 2y ago
  You've completely ignored what I wrote. The formula the white house used to set tariffs would result in lower tariffs for Canada and Mexico. If both countries were included in the formula Trump would have to cut announced tariffs on both countries. Do you dispute this? It's trivial to calculate.
  - clipsy 2y ago
    You're making the mistake of believing that anyone left in the MAGA camp is arguing in good faith.
  - walterbell 2y ago
    You're disagreeing with statements by the President of Mexico, describing the result of ongoing negotiations? Canada and Mexico share a physical border with USA, which has already resulted in unique (i.e. unrelated to the math of 180+ other countries which don't physically border USA) tariffs tailored to border security goals, under national security emergency directives which overrode USMCA. USMCA has been historically gamed by international manufacturers seeking more favorable terms for products destined to the US market. As stated by the leadership of both Mexico and Canada, USMCA will need to be renegotiated to address issues identified by all three parties, which would then reduce the need to invoke the emergency-power tariffs that have been deployed against 180+ countries.
    - graeme 2y ago
      Yes, because the math provides a much simpler explanation.
      - walterbell 2y ago
        Napkin math cannot apply to Mexico and Canada tariffs, because the USMCA (and preceding NAFTA) have long intertwined North American manufacturing supply chains, with components moving back and forth across borders. Even the emergency border security tariffs and counter-tariffs announced earlier this year by US and Canada have since been carefully tailored for specific products and exceptions, as cooler heads prevailed on both sides of the border, to minimize immediate and catastrophic ripple effects across North American manufacturing.