Trade War Hungry US! NAFTA walking off into a “Sunset Clause”?

Making America great Again…….?

Apparently Canada is a threat to National Security? Is a Canadian wall next?

The Whitehouse has posted the following:

What You Need to Know About Implementing Steel and Aluminum Tariffs on Canada, Mexico, and the European Union

Today, President Trump announced that he is taking action to protect America’s national security from the effects of global oversupply of steel and aluminum. Following extensive discussions and a months-long process, the President will implement tariffs on steel and aluminum imports from Canada, Mexico, and the European Union.

The implementation of steel and aluminum tariffs follows the announcement by President Trump on March 8, 2018, of a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports.

In the initial proclamations in March, President Trump welcomed any country with which the United States shares a security relationship to discuss alternative means to address threatened impairment to the national security caused by their steel and aluminum exports to the United States. The President made it clear that the Administration was willing to work with those countries to find separate arrangements that would meet the national security requirements of the United States.

The United States has reached an arrangement with South Korea on steel, which was announced on April 30. Included in today’s proclamations, the United States has reached arrangements on steel with Australia, Argentina, and Brazil, and with Australia and Argentina on aluminum.

The United States was unable to reach satisfactory arrangements, however, with Canada, Mexico, or the European Union, after repeatedly delaying tariffs to allow more time for discussions.

WHY: Current quantities and circumstances of steel and aluminum imports into the United States threaten to impair national security. These excessive imports are driven in large part by the worldwide glut from overproduction by other countries.

In January 2018, the Department of Commerce delivered two reports on steel and aluminum investigations conducted under Section 232 of the Trade Expansion Act of 1962.

The reports found that the excessive level of imports threatened to impair the national security because further closures of domestic production capacity would result in a situation where the United States would be unable to meet demand for national defense and critical infrastructure in a national emergency.

On March 8, President Trump accepted the Department of Commerce’s recommendations and began to take action to address the threatened impairment to America’s national security.

Read more about President Trump’s Section 232 action here.

Trump has decided that a 25% tariff on Canadian metal is going to some how help?
Below is the list of retaliatory tariffs the Canadian Government will implement on Canada day.

Table 1
Tariff heading, subheading or item* Description**
72.06 Iron and non-alloy steel in ingots or other primary forms (excluding iron of heading 72.03)
72.07 Semi-finished products of iron or non-alloy steel
72.08 Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated
72.09 Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, cold-rolled (cold-reduced), not clad, plated or coated
72.10 Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, clad, plated or coated
72.11 Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, not clad, plated or coated
72.12 Flat-rolled products of iron or non-alloy steel, of a width of less than 600 mm, clad, plated or coated
72.13 Bars and rods, hot-rolled, in irregularly wound coils, of iron or non-alloy steel
72.14 Bars and rods of iron or non-alloy steel, not further worked than forged, hot-rolled, hot-drawn or hot-extruded, but including those twisted after rolling.
72.15 Other bars and rods of iron or non-alloy steel
72.17 Wire of iron or non-alloy steel
72.18 Stainless steel in ingots or other primary forms; semi-finished products of stainless steel
72.19 Flat-rolled products of stainless steel, of a width of 600 mm or more
72.20 Flat-rolled products of stainless steel, of a width of less than 600 mm
72.21 Bars and rods, hot-rolled, in irregularly wound coils, of stainless steel
72.22 Other bars and rods of stainless steel; angles, shapes and sections of stainless steel
72.23 Wire of stainless steel
72.24 Other alloy steel in ingots or other primary forms; semi-finished products of other alloy steel
72.25 Flat-rolled products of other alloy steel, of a width of 600 mm or more
72.26 Flat-rolled products of other alloy steel, of a width of less than 600 mm
72.27 Bars and rods, hot-rolled, in irregularly wound coils, of other alloy steel
72.28 Other bars and rods of other alloy steel; angles, shapes and sections, of other alloy steel; hollow drill bars and rods, of alloy or non-alloy steel
72.29 Wire of other alloy steel.
7216.10 U, I or H sections, of iron or non-alloy steel, not further worked than hot-rolled, hot-drawn or extruded, of a height of less than 80 mm
7216.21 L sections, of iron or non-alloy steel, not further worked than hot-rolled, hot-drawn or extruded, of a height of less than 80 mm
7216.22 T sections, of iron or non-alloy steel, not further worked than hot-rolled, hot-drawn or extruded, of a height of less than 80 mm
7216.50 Other angles, shapes and sections, of iron or non-alloy steel, not further worked than hot-rolled, hot-drawn or extruded
7216.99 Other angles, shapes and sections, of iron or non-alloy steel
73.05 Other tubes and pipes (for example, welded, riveted or similarly closed), having circular cross-sections, the external diameter of which exceeds 406.4 mm, of iron or steel
73.06 Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel
7301.10 Sheet piling of iron or steel, whether or not drilled, punched or made from assembled elements
7302.40 Railway or tramway track construction material of iron or steel: Fish-plates and sole plates
7302.90 Other railway or tramway track construction material of iron or steel
7304.11 Line pipe of a kind used for oil or gas pipelines: Of stainless steel
7304.19 Line pipe of a kind used for oil or gas pipelines: Other
7304.24 Casing or tubing, of a kind used in drilling for oil or gas: Of stainless steel
7304.29 Other casing or tubing, of a kind used in drilling for oil or gas
7304.31 Tubes and pipes, of circular cross-section, of iron or non-alloy steel: Cold-drawn or cold-rolled (cold-reduced)
7304.39 Other tubes and pipes, of circular cross-section, of iron or non-alloy steel
7304.41 Tubes and pipes, of circular cross-section, of stainless steel: Cold-drawn or cold-rolled (cold-reduced)
7304.49 Other tubes and pipes, of circular cross-section, of stainless steel
7304.51 Tubes and pipes, of circular cross-section, of other alloy steel: Cold-drawn or cold-rolled (cold-reduced)
7304.59 Other tubes and pipes, of circular cross-section, of other alloy steel
7304.90 Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel.
*Where listed at the heading or subheading level, coverage includes all tariff items under that heading or subheading.
**Descriptions are included for illustrative purposes and do not necessarily reflect Harmonized System nomenclature.
Table 2
Tariff heading, subheading or item* Description**
0403.10 Yogourt
0901.21 Coffee, roasted: Not decaffeinated
1602.32.11 Prepared meals: Of spent fowl; Specially defined mixtures
1602.32.92 Other: Specially defined mixtures, other than in cans or glass jars; Spent fowl other than in cans or glass jars
1602.50.10 Prepared meals, of bovine
1602.50.99 Other prepared or preserved meat of bovine, other than in cans or glass jars
1702.20 Maple sugar and maple syrup
1704.90.20 Liquorice candy; Toffee
1704.90.90 Other sugar confectionery (including white chocolate), not containing cocoa.
1806.31 Other chocolate, in blocks, slabs or bars: Filled
1806.32 Other chocolate, in blocks, slabs or bars: Not filled
1905.90.51 Pizza and quiche
2001.10 Cucumbers and gherkins
2007.99.10 Strawberry jam
2007.99.90 Nut purées and nut pastes, berry purées, other fruit purées other than banana purée, other jams, jellies
2009.12 Orange juice: Not frozen, of a Brix value not exceeding 20
2103.10 Soya sauce
2103.20 Tomato ketchup and other tomato sauces
2103.30.20 Prepared mustard
2103.90 Mayonnaise, salad dressing, mixed condiments and mixed seasonings, other sauces
2104.10 Soups and broths and preparations therefor
2202.10 Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured
2208.30 Whiskies
3304.30 Manicure or pedicure preparations
3305.30 Hair lacquers
3307.10 Pre-shave, shaving or after-shave preparations
3307.49 Preparations for perfuming or deodorizing rooms, including odoriferous preparations used during religious rites, nes
3401.30 Organic surface-active products and preparations for washing the skin, in the form of liquid or cream and put up for retail sale, whether or not containing soap
3402.20.10 Automatic dishwasher detergents
3406.00.90 Other candles and tapers and the like not including those for birthdays, Christmas or other festive occasions
3506.10 Products suitable for use as glues or adhesives, put up for retail sale as glues or adhesives, not exceeding a net weight of 1 kg
3808.91.10 Insecticides: In packages of a gross weight not exceeding 1.36 kg each
3808.92.10 Fungicides: In packages of a gross weight not exceeding 1.36 kg each
3808.93.10 Herbicides, anti-sprouting products and plant-growth regulators: In packages of a gross weight not exceeding 1.36 kg each
3923.21.90 Other sacks and bags (including cones) of polymers of ethylene
3923.29.90 Other sacks and bags (including cones) of other plastics, nes
3924.10 Tableware and kitchenware
3924.90 Household articles and hygienic or toilet articles, of plastics
4412.39 Plywood, consisting solely of sheets of wood (other than bamboo), each ply not exceeding 6 mm thickness: Other, with both outer plies of coniferous wood
4412.99.90 Other plywood, veneered panels and similar laminated wood
4802.56 Other paper and paperboard, not containing fibres obtained by a mechanical or chemi-mechanical process or of which not more than 10% by weight of the total fibre content consists of such fibres: Weighing 40 g/m² or more but not more than 150 g/m², in sheets with one side not exceeding 435 mm and the other side not exceeding 297 mm in the unfolded state
4811.59 Other paper and paperboard coated, impregnated or covered with plastics (excluding adhesives)
4818.10 Toilet paper
4818.20 Handkerchiefs, cleansing or facial tissues and towels
4818.30 Tablecloths and serviettes
4822.10 Bobbins, spools caps and similar supports of a kind used for winding textile yarn, of paper pulp, paper or paperboard (whether or not perforated or hardened)
4822.90 Other bobbins, spools caps and similar supports of paper pulp, paper or paperboard (whether or not perforated or hardened)
4909.00 Printed or illustrated postcards; printed cards bearing personal greetings, messages or announcements, whether or not illustrated, with or without envelopes or trimmings.
7310.10 Beer kegs, of iron or steel, of a capacity of 50 litres or more
7310.29 Beer kegs, of iron or steel, of a capacity of less than 50 litres
7321.90 Parts of iron or steel, of stoves, ranges, grates, cookers (including those with subsidiary boilers for central heating), barbeques, braziers, gas-rings, plate warmers and similar non-electric domestic appliances
76.04 Aluminum bars, rods and profiles
76.05 Aluminum wire
76.06 Aluminum plates, sheets and strip, of a thickness exceeding 0.2 mm
76.07 Aluminum foil (whether or not printed or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.2 mm
76.08 Aluminum tubes and pipes
76.09 Aluminum tube or pipe fittings (for example, couplings, elbows, sleeves)
76.10 Aluminum structures (excluding prefabricated buildings of heading 94.06) and parts of structures (for example, bridges and bridge-sections, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, balustrades, pillars and columns); aluminum plates, rods, profiles, tubes and the like, prepared for use in structures
76.11 Aluminum reservoirs, tanks, vats and similar containers, for any material (other than compressed or liquefied gas), of a capacity exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment
76.12 Aluminum casks, drums, cans, boxes and similar containers (including rigid or collapsible tubular containers), for any material (other than compressed or liquefied gas), of a capacity not exceeding 300 litres, whether or not lined or heat-insulated, but not fitted with mechanical or thermal equipment
76.13 Aluminum containers for compressed or liquefied gas
76.14 Stranded wire, cables, plaited bands and the like, of aluminum, not electrically insulated
76.15 Table, kitchen or other household articles and parts thereof, of aluminum; pot scourers and scouring or polishing pads, gloves and the like, of aluminum; sanitary ware and parts thereof, of aluminum
76.16 Other articles of aluminum
8418.10 Combined refrigerator-freezers, fitted with separate external doors
8419.19 Instantaneous or storage water heaters, non-electric: Other than instantaneous gas water heaters
8422.11.90 Other dish washing machines, other than of the household type
8433.11 Mowers for lawns, parks or sports-grounds: Powered, with the cutting device rotating in a horizontal plane
8450.11 Household or laundry-type washing machines, each of a dry linen capacity not exceeding 10 kg: Fully-automatic machines
8450.20 Household or laundry-type washing machines, each of a dry linen capacity exceeding 10 kg
85.37 Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 85.35 or 85.36, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of Chapter 90, and numerical control apparatus, other than switching apparatus of heading 85.17
8903.10 Inflatable boats
8903.91 Sailboats, with or without auxiliary motor
8903.92 Motorboats, other than outboard motorboats
8903.99.90 Outboard motorboats, other vessels for pleasure or sports, nes
90.32 Automatic regulating or controlling instruments and apparatus
9401.61 Other seats, with wooden frames: Upholstered
9404.21 Mattresses of cellular rubber or plastics, whether or not covered
9404.29 Mattresses of other materials
9404.30 Sleeping bags
9404.90 Other bedding and similar articles, nes
9504.40 Playing cards
9608.10 Ball point pens
9608.20 Felt tipped and other porous-tipped pens and markers
*Where listed at the heading or subheading level, coverage includes all tariff items under that heading or subheading.
**Descriptions are included for illustrative purposes and do not necessarily reflect Harmonized System nomenclature.

Don’t forget that  there is still the NAFTA negotiations That is looking like it has it’s share of problems.

Business Insider Reported the following:

Trudeau received word on Tuesday from Vice President Mike Pence that any sit-down would require that Canada agree to a sunset clause for the new version of NAFTA.

A sunset clause would require the three countries to reevaluate NAFTA after five years at a time. The sunset clause could allow any of the countries to walk away from the deal at those intervals.

Canada and Mexico are staunchly opposed to the sunset clause because the provision would introduce significant uncertainty into their respective economies. For example, a business considering where to place a new factory may not want to build in Canada if there a chance the US would pull out of NAFTA before it built the factory.

Instead of a sunset clause, Canada and Mexico have proposed a five-year review to study the effects of NAFTA on the members countries. In contrast to the US proposal, this type of review would not give the countries the option to jump out of the deal.

Given Canada’s opposition to the sunset clause, Trudeau told reporters that he called off the meeting.

The US is doing it’s best to isolate itself from it’s allies with almost daily announcements of sanctions and Tariffs. This will at some point create hostility towards it. Nurturing an environment where nations will build their relationships and agreements that may eventually threaten US Hegemony.