President Trump’s move yesterday to boost tariffs in aluminum and steel imports brought a swift response from Canada and Europe. The Associated Press reported Canada said Wednesday they’re adding a 25% reciprocal tariffs on steel products and would also raise taxes on multiple items, including tools, computers, display monitors and sports equipment. Likewise, the European Union said they’d raise tariffs on American beef, poultry, bourbon, motorcycles, peanut butter and jeans. WRCR market analyst Ken Mahoney of Mahoney Asset Management doesn’t recommend Trump’s chaotic approach to tariffs…
Combined, the new tariffs will cost companies billions of dollars, and further complicate relationships with global trading partners. The AP says companies will either take the losses and earn fewer profits, or, more likely, pass costs along to consumers in the form of higher prices.