The threat of American customs tariffs imposed on Canadian goods is taken seriously by the Quebec and Canadian economic community, even if we seem to see Donald Trump’s attitude as a negotiation strategy and perhaps even a bluff.
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“We have the impression of returning to the same film with the same actors, with the same bad reasons. We hope that it will give the same results,” Jean Simard, president and CEO of the Aluminum Association of Canada, told TVA Nouvelles.
“We know his determination to use the tariff tool to achieve his ends in the context of negotiations. It’s obvious that a 25% signal is excessive. And so, that’s why it is in all appearance, in all likelihood, more of a signal than a desired end,” he added.
The latter is also surprised to see Donald Trump put Canada and Mexico in the same boat with regard to the issues of fentanyl and illegal immigration.
“We’re a little bit incredulous when we hear that. The only reason we can see is the desire to send a signal to other countries that it is capable of going as far as treating an allied, friendly and strategic country like Canada in the same way. or even worse than what he foresees as a treatment for China,” explains Mr. Simard.
Imposing tariffs on Canadian aluminum is not logical for the American economy, maintains Jean Simard.
“Until recently, the top executive of American industry stated unequivocally that Canadian metal is existential to the American aluminum industry. There are 750,000 jobs in the United States, American jobs, which are directly linked to the processing of aluminum, including Canadian aluminum,” he says.
“Aluminum from Saguenay, Quebec, is used in the production of Ford 150s and many other vehicles in the United States. Metal is part of a value chain perfectly integrated into the automotive sector,” adds Jean Simard.
The latter estimates that the repercussions of customs tariffs on aluminum would be much worse for the United States economy than that of Canada.
“We just take our aluminum exports which represent 2.8 million tonnes to the United States. This would represent 3.25 billion US dollars in surtax on Canadian aluminum entering the United States which would be reflected in the pocket of the consumer, in the purchase of household appliances, automobiles and other products,” mentions the CEO of the Aluminum Association of Canada.
Jean Simard expects that American companies that use Canadian aluminum will very soon make representations to the Trump administration to make the president-elect see reason.
To see the full interview, watch the video above.
