Tariff Talk

The voice of former President Ronald Reagan is unexpectedly influencing current discussions on tariffs placed on goods from Canada. A commercial featuring excerpts from a Reagan speech on tariffs has coincided with an announcement by the President of a 10% increase on Canadian goods, effective November 1. No official notice has yet been issued detailing the terms of the tariff—whether it represents a new measure, a modification to an existing one, or how it will affect goods that qualify under the USMCA.

It has been nearly seven months since the White House lawn was the focal point for reciprocal trade discussions. Now, on the cusp of November 1, a familiar sense of anticipation has returned as we await word on whether China will face a new 100% tariff. Frustration over rare earth minerals continues to mount, with President Trump threatening to impose the new tariff on China if a deal is not reached—though he has also expressed optimism that an agreement is forthcoming. With the two leaders scheduled to meet on Thursday, both nations have publicly stated that a framework for a deal is underway, addressing tariffs, critical minerals (used in high-tech devices), and soybeans.

While the President has been in Asia, trade agreements have been reached with Japan and Thailand. These deals do not alter current tariff rates but suggest ongoing discussions about adding items to Annex II exclusions for region-specific commodities. Other concessions involve critical mineral investment, non-trade barriers, and foreign investment in the U.S.

With changes likely imminent for Canada and China, OCEANAIR will continue to keep clients informed.