Canadian official says Carney and Trump to speak in the coming days

Canadian official says Carney and Trump to speak in the coming days - Reuters

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A Canadian official said on Sunday that Canadian Prime Minister Mark Carney and US President Donald Trump will likely talk “over the next number of days” after the US imposed a 35% tariff on goods not covered by the US-Mexico-Canada trade agreement, Reuters reported on Sunday.

“We’re encouraged by the conversations with Secretary Lutnick and Ambassador Greer, but we’re not yet where we need to go to get the deal that’s in the best interest of the two economies,” said Dominic LeBlanc, the federal cabinet minister in charge of US-Canada trade.

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Tariffs FAQs

What are tariffs?

Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.

What is the difference between taxes and tariffs?

Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers.

Are tariffs good or bad?

There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs.

What is US President Donald Trump’s tariff plan?

During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.