Question

What is your opinion about this article   "US May Reimpose Tariffs On Canadian Aluminum"  by Anna Swanson, The New York Times??

https://www.pressreader.com/usa/the-capital/20200624/281560883056002

Answer 1

The article provides a factual description of the background and probable consequences of the scenario of US tariffs on Canadian ALuminium, We should realise that amid the pandemic the decision to impose tariifs on Canadian Aluminium imports by the Trump administration can have severe repercussions.

Canada is dejected by the notion of voluntarily limiting its production to satisfy American demands. A deeper understanding of the issue will make one aware that the total volume of aluminum produced by Canada hasn't varied significantly — only the type of product differs, which is a short term measure to combat the constraints brought in by the pandemic. This is naturally brought about by the change in market dynamics.

In the new North American trade agreement the Trump administration put up specific negotiation clauses for the in an attempt to shut out offshore suppliers if it found them threatening to the economy .However, one should note that Canadian aluminum is geographically convenient and manufactured in cost-efficient mills,and hence this new deal should be considered a win-win for both parties. Also, the consequence of a tariff would be the Trump administration taxing the suppliers extra , just as they're attempting to recover. As both parties struggle to reach an agreement it is the consumer who will be affected if tariffs increase as per the agreement. The persistent pressure by companies like Century Aluminium and Magnitude 7 also requires a thorough analysis of the domestic supply in US to arrive at a reasonable decision.

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