The tension between Washington and Ottawa is high. Donald Trump has in fact threatened new duties to Canada: In particular, the American president said he was intent on imposing additional rates on the import of steel and aluminum from Ottawa: additional rates which, if applied, would bring the total value of the duties in the sector to 50%. At the moment when the tenant of the White House should decide to pull straight, the new measures would enter into force tomorrow morning.
The American threat came as placed at the Donar decision to increase the price of electricity provided to the States of Minnesota, New York and Michigan by 25%. That same Ontario who in turn said ready to cut energy exports to the USA. For its part, Trump said that Canada “must immediately eliminate its anti-American rate for farmers from 250% to 390% on various US dairy products, which has long been considered scandalous”.
In short, the commercial clash between the two countries is becoming more and more harsh. As reported by CNN, Canada represents the main source of steel and aluminum for the United States. “Canadian aluminum exports represent 41% of all the aluminum imported from the United States last year, while Canadian iron and steel represent about a quarter,” said the head.
The hasty of the duel rises. And of course also for Trump the situation could be risky. Given the very close commercial connections between Washington and Ottawa in the steel sector, repercussions for the US labor market may occur. However, the strategy of the American president implies running this risk.
Trump restarted commercial tensions with Canada (and also with Mexico) last month. And he mainly justified his hard line, referring to the fact that the two countries would not do enough to adequately control their borders with the United States. A problem, this, which, according to the White House, would help feed the flows of drugs and irregular immigrants directed towards the US territory.
With this commercial escalation, Trump therefore aims at a real nerve war with Ottawa. The tenant of the White House is convinced that the Canadians will not hold the pressure of the duties announced a few hours ago on aluminum and steel. The goal, they think in the Trump team, is to scare the Canadian authorities, pushing them both to take a step back on the surcharges to energy and further strengthen the border with the United States.
We always remember that, from a strategic point of view, for the American president the duty is first of all a negotiating tool: an instrument, that is, with which to press the interlocutor under pressure, to open negotiations on a certain dossier (not necessarily economic) and finally emerge an agreement that is as advantageous as possible. The one in place with Canada is, therefore, a full -blown iron arm. The White House aims to kneel a crucial economic sector for Ottawa. Ottawa, on the other hand, hopes to leverage the negative reaction of the American bag for new duties. In short, the duel is played on the thread of this tension.
