Free Trial
USDCAD TECHS

Takes Out 20-, 50-Day EMAs

US TSYS

Weak Global PMIs

AUDUSD TECHS

Pierces 50-Day EMA

US TSYS

Eurodollar/SOFR, Tsy Option Roundup

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
(MNI) Ottawa

U.S. President Donald Trump said Thursday he will impose a 10% tariff on aluminum from Canada, returning to a theme of protectionism a month after a new trade pact to replace Nafta took effect.

Trump told workers at an Ohio Whirlpool plant his plan was to "bring millions and millions more jobs and thousands more factories back to American shores where they belong," in a campaign speech as he seeks a second term. "Politicians let foreign nations steal our jobs" and "plunder" the economy through unfair trade practices like currency manipulation and dumping of goods, he said.

"Canada was taking advantage of us, as usual," Trump said. "The aluminum business was being decimated by Canada, very unfair to our jobs and our great aluminum workers." Canada had violated a pledge not to flood the U.S. market in recent months, he said.

While the USMCA agreement with the U.S., Canada and Mexico signed earlier this year ended the prospect of a widespread tariff war, Trump had always kept the threat of steel and aluminum tariffs. The president has often said he can rely on a national security law to impose such tariffs, although Canada and the U.S. share a continental defense system and are partners in NATO.

Canadian Prime Minister Justin Trudeau has argued the U.S. can't produce enough aluminum to meet its needs anyways so tariffs will only boost costs for American firms and consumers. The U.S. in the past has put tariffs on both Canadian aluminum and steel, which led Canada to retaliate dollar-for-dollar on imported U.S. products.

The new dispute may weaken Canada's dollar, which had been gaining earlier this year as the Fed offered major stimulus and there are signs the world's largest economy will be slowed by troubles containing Covid-19.

It may also rattle relations with China, after the U.S. signed a Phase One trade deal earlier this year and then cooled on a deeper pact.

MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com
MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.