Canadian Prime Minister Mark Carney announced on Tuesday that Canadian government will expand positive credit guarantees to the soft wooden timber industry, struggling with the tariff effects that dragged exports to the United States.
Key Important Points
Canadian Prime Minister Carney announced that the government will provide a $ 700 million loan guarantee to the Canadian Soft Wood timber industry, faced with a sharp decline in exports to the US market thanks to its upright commodity tariffs given by the Trump administration.
Although Prime Minister Carney is still willing to make an agreement with the US and the Trump team, more than 85% of Canada-US trade remained effectively undisputed. Most of the trade between Canada and the United States within the scope of the “USMCA” agreement, which donal Trump personally negotiated during the first period of the first period, in the follow -up of the long -standing North American Free Trade Agreement (NAFTA), which has been going on for half of USMCA for half of the effort.
Prime Minister Carney hugged Trump that he would talk personally when he was logical, and showed that Canada was not in a hurry to re -negotiate his own trade agreements with Trump.
Market reaction
Canadian Dollars (CAD) markets remain inactive in expressions, as investors expect significant developments on trade and economic data, Loonie purifies water.
USD/CAD daily graphics
Tariffs FAQ
Tariffs are certain goods imports or customs duties received in a product category. Tariffs are designed to help local manufacturers and manufacturers to be more competitive in the market by providing a price advantage compared to similar goods that can be imported. Tariffs are widely used as means of protectionism together with trade barriers and import quotas.
Although tariffs and taxes create government income to finance public goods and services, they have several distinctions. Tariffs are paid at the entrance harbor and taxes are paid during purchasing. While taxes apply to individual taxpayers and enterprises, tariffs are paid by importers.
There are two schools of thought among economists about the use of tariffs. While some claim that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that can increase the higher prices in the long run and encourage the schedules of the Simsekkara for taste.
During the presidential elections in November 2024, Donald Trump clearly stated that he plans to use tariffs to support the US economy and American manufacturers. In 2024, Mexico, China and Canada formed 42% of total US imports. According to the US Census Bureau, Mexico came to the fore as the best exporter with $ 466.6 billion. Therefore, Trump wants to focus on these three countries while applying a tariff. It also plans to use income from tariffs to reduce personal income taxes.
