Tariffs, Trade Wars & Legal Shields: RRM Law can Help

Immigration law

15 Apr

Top economist Swaminathan Aiyar has a knack for bringing humor into serious matters. When he called Trump’s tariffs "Recession Day, not Liberation Day," he was hinting at the rather unexciting consequences of trade wars. While some might have hoped for a grand economic victory, Aiyar’s quip suggests that the tariffs would likely lead to a decline in the world’s GDP, not a "liberation" from unfair trade practices.

Mr. Trump declared that the so-called "Liberation Day" would go down in history as "the day American industry was reborn," claiming that too much "plunder" had been going on by other countries. Standing in the White House Rose Garden, with his Cabinet and blue-collar workers looking on, he boldly declared his goal to raise "trillions and trillions of dollars" and usher in a shiny new "golden age." It’s like he is planning to make the economy sparkle—hopefully without needing a treasure map.

The White House confirmed that Canada would not face any new broad tariffs beyond what was already announced and that a 25% tariff on all foreign-made cars will take effect at midnight of 2nd April 2025, which could significantly impact Canada’s auto industry. The White House clarified that this tariff would apply to Canadian-made passenger vehicles, but only on the value of the parts in those cars that come from outside the U.S.

In the latest round of tariffs, President Trump imposed duties on multiple countries globally, although Canada and Mexico were exempt from any new tariffs. Tariffs on Canadian-made vehicles, steel, aluminum, and energy products remain in effect.

This is the most recent response from Canadian leaders regarding the tariffs:

1. Prime Minister Mark Carney, speaking from Ottawa on Thursday, said that President Donald Trump's latest tariff actions mean the end of Canada's historic trade relationship with the U.S., but maintained the U.S. is still Canada's main security and defence ally. He stated that Canada will implement countermeasures designed to exert "maximum impact in the United States and minimal impact here in Canada.”  He also warned that the path ahead would be challenging as Canada navigates the trade conflict.

2. Conservative Leader Pierre Poilievre announced his plan to eliminate the federal sales tax on Canadian-made vehicles, a policy proposal previously put forward by the NDP last week.

3. Meanwhile, NDP Leader Jagmeet Singh suggested the use of wartime Victory Bonds as a means to finance Canada's efforts in the trade war.

4. Ontario Premier Doug Ford said Canada received "the best of a bad deal" by avoiding additional tariffs from U.S. President Donald Trump's administration but emphasized that the deal remains "totally unacceptable" due to the continued threat to the nation's auto sector.

RECIPROCAL TARIFFS: (Trump said reciprocal means they do it to us, and we do it to them).

COUNTRY	TARRIF CHARGED FOR THE USA Including Currency Manipulation and Trade Barriers	USA DISCOUNTED Reciprocal Tariffs
China	67%	34%
European Union	39%	20%
Vietnam	90%	46%
Taiwan	64%	32%
Japan	46%	24%
India	52%	26%
South Korea	50%	25%
Thailand	72%	36%
Switzerland	61%	31%
Indonesia	64%	32%
Malaysia	47%	24%
Cambodia	97%	49%
United Kingdom	10%	10%
South Africa	60%	30%
Brazil	10%	10%
Bangladesh	74%	37%
Singapore	10%	10%
Israel	33%	17%
Philippines	34%	17%
Chile	10%	10%
Australia	10%	10%
Pakistan	58%	29%
Turkey	10%	10%
Sri Lanka	88%	44%
Columbia	10%	10%

 

Just minutes after Trump's announcement, futures linked to America's benchmark S&P 500 dropped by two percent, while the Nasdaq fell by three percent — declines not witnessed since the beginning of the pandemic. The measures are deeply divisive in the US, with condemnation from Democrats who argue they will only drive inflation.

Over the next four years, Canada can expect chaos, unpredictability, and shifting goals from a White House that ignores traditional trade rules, with Trump's actions seen as a surprising development given the potential harm such large tariffs could inflict on the Canadian economy.

“Trump's reciprocal tariffs announcement shakes up global trade”, the Canadian Press Explains. But Canada will  continue negotiating, staying composed and calm. Canada’s goal is to secure a sustainable trade deal and, of course, reduce tariffs and will carry on with this effort.

RRM Law can assist businesses affected by tariffs and trade disputes by offering expert guidance on compliance with changing trade regulations, providing strategic advice to minimize financial impact, and representing clients in negotiations or legal proceedings. They can help navigate customs laws, manage import/export issues, and support risk management strategies.

Also, RRM Law, a top Brampton immigration law firm, offers expert assistance with eligibility requirements, application preparation, and document accuracy, ensuring a smooth process despite any changes. In addition to immigration services, RRM Law provides support in criminal defense, real estate, and family law. The firm can represent you in dealings with the government and guide you through the steps toward applying for permanent residence with the Canadian federal government.

Speak with an experienced attorney  today.  Call (905) 798-3776