President Trump Threatens New Tariffs On Canada, South Korea, And Countries That Trade With Cuba

There was an abundance of trade and tariff-related news last week from the Trump administration, including:

• As The Associated Press explained, last Thursday, Jan. 29 President Trump threatened Canada with a 50 percent tariff on any aircraft sold in the United States. The president said the penalties were necessary since Canada refused to certify jets from Savannah, Ga.-based Gulfstream Aerospace. The president did not offer any additional details. President Trump’s announcement came one week after he said he would impose a 100 percent tariff on all goods imported into the United States from Canada if Canadian leaders went forward with a planned trade deal with China. (Read more about that threat in last week’s Connecting the Dots.)
• In a post on social media, President Trump said the United States would impose tariffs up to 25 percent on imports of autos and other goods from South Korea. The president said the new penalties are necessary since South Korean have not lived up to their obligations outlined in the trade deal the two countries agreed to last year. The next day, however, President Trump pledged that U.S. ​and South Korean officials would work out a solution to his concerns. As a reminder, as part of that trade deal, South Korean officials pledged to invest $350 billion in the United States, allow more U.S. automobile imports into South Korea, and eliminate some non-tariff barriers. South Korea’s parliament has not moved the bill that would allow for the $350 billion investment. The White House also said South Korea’s government has not taken action to meet its commitments regarding agriculture, industry, and digital services. Read more at this link.
• In an executive order issued on January 29, President Trump threatened to impose tariffs on countries and groups that engage in business in, and provide oil to, Cuba. Those countries and groups include Russia, China, and Iran, along with the militant groups Hamas and Hezbollah. More specifically, the executive order said “an additional ad valorem duty may be imposed on imports of goods” from these countries and groups.