The 25 percent rate Canada started collecting on cars and trucks that were imported into the United States on Wednesday Only the newest act of retribution of the country at rates imposed by President Trump for Canadian exports.
The estimated 8 billion Canadian dollars a year, around $ 5.7 billion, which are expected to generate those charges, will also help bank roles for companies and employees who are now under the economic threat to the United States.
With no clear or immediately in sight to Mr Trump's rates, Canada now focuses on reducing the impact of the job loss, plant closures and bankruptcies that the taxes are likely to cause. Other countries, including Spain and South Korea, have also announced various measures to try to dampen the blow of rates.
In Canada the consequences of rates about cars, the largest export in the country to the United States, apart from energy, came quickly.
Hours before a US rate of 25 percent came into force on cars in Canada this month, Stellantis announced that his assembly factory in Windsor, Ontario, fell two weeks when it rated his plans.
Flavio Volpe, the president of the Automotive Parts Manufacturers' Association of Canada, estimates that a maximum of 12,000 employees in parts factories in Canada and in parts factories in Canada in the United States are stationed by the closure of Stellantis.
So far, however, Prime Minister Mark Carney has not precisely explained how the money generated by the reaction of Canada will be spent on American rates. In addition to the $ 5.7 billion of the retaliatory cars, Canada also expects to generate $ 42 billion annually from a series of taxes that imposed it in March in response to earlier rates applied by Mr Trump.
The nature of the economic crisis created by Mr. Trump is also challenging governments in Canada and all over the world to find out what kind of financial support will work.
Rob Gillezeau, Professor Economy at the University of Toronto, said that many of the temporary measures used during the pandemic or during recessions in the past It is unlikely that it is effective as Mr. Trump is not fast Back at rates.
“Usually you expect a return to normal,” he said. “But this is potentially a permanent structural commercial shock. I don't think there is necessarily a good reason to think that the companies here will be the same companies here today.”
Canada is hit with three separate American rates: taxes on cars and car parts, aluminum and steel, and a third rate for goods that fall outside the scope of the trade agreement among the United States, Canada and Mexico.
Some Canadian provinces have dusted measures that they used during the pandemic, in particular Ontario, which is the home of the car industry and a large part of its wider industrial basis, including the steel sector.
On Monday, Doug Ford, the Prime Minister of Ontario, said that companies would be able to adjust a variety of taxes at the end of June against a few months.
“We can't control President Trump But we have full control over the kind of future that we are building for ourselves, “said Mr. Ford, who recently became a fixture on American television news, because he has made the business at rates.
The government estimates that postponing tax accounts will enable companies to hold around 9 billion Canadian dollars for longer than they had expected.
“This can help for a company on the margin, it will help.” Professor Gillezeau said. “But given that this will run away, I don't think the impact on the survival of companies will be particularly useful.”
The province said it had also returned 2 billion Canadian dollars from a surplus in an insurance fund in the workplace to employers as a further boost.
The western province of Manitoba has announced payment deferment for its companies on some taxes, while Quebec and New Brunswick offer low costs for companies to adapt to a world where the United States may no longer be a financially feasible market.
The Business Development Bank of Canada, which is owned by the federal government, has A special loan program for companies that are affected by rates. And in another repetition of the pandemic rules for unemployment, have changed to help employees whose hours will have been reduced because of the American rates.
“We have not really been to a situation before,” said Professor Gillezeau. “Trying to identify which companies and sectors will be fine – that is really difficult,” he added.
