Sep 09, 2020
Scott, Sununu and Mills call on Trump to end tariffs on Canadian steel, aluminum
2020-09-10
Republican Gov. Phil Scott Tuesday called on President Donald Trump to reverse the White House’s decision to levy 10% tariffs on Canadian aluminum, a tax implemented on imports from Vermont’s northern neighbor at the beginning of August.
Scott, accompanied by New Hampshire’s Republican Gov. Chris Sununu and Maine Democratic Gov. Janet Mills, wrote a letter to Trump Tuesday telling the president the tariff will hurt the economy in northern New England during a time when states are already struggling because of the Covid-19 pandemic.
“We strongly believe that this stance regarding Canadian aluminum will only hurt American manufacturers. It is time to look at solutions to elevate commerce on both sides of the border and not penalize key industries,” the governors wrote.
Companies in Vermont, New Hampshire and Maine have strong ties with Canada, and about half of all trade in those three states is conducted with the bordering country, according to Scott’s office.
Québec is also Vermont companies largest trading partner, with around $5 billion in trade crossing the border annually.
The governors said it is their belief Trump’s decision will result in rising costs for people already struggling because of the coronavirus and that “products from a F-35 jet to a washing machine to a can of beer” will become more expensive.
“New England depends on bi-lateral trade with Canada,” the governors added. “Our states rely on the uninterrupted transactional business for many of our business and high growth sectors.
“The trade relations and subsequent economic benefits are sorely needed in these trying times,” they continued.
The letter from Scott — a vocal Trump critic — and two of his fellow New England governors comes after the president announced in early August that he was reimposing the 10% tariff on Canadian aluminum in an attempt to help struggling American producers.
The decision from the White House came just one month after the North American trade deal — the United States-Mexico-Canada-Agreement — went into effect at the start of July. In August, Trump said that he had decided to reimpose the tax on Canada because the country was “taking advantage of us as usual.”
“To be a strong nation, America must be a manufacturing nation and not be led by a bunch of fools,” the president said, according to the New York Times. “That means protecting our national industrial base.”
Trump imposed tariffs on steel and aluminum from Canada, Mexico and the European Union in 2018, which led to retaliatory tariffs on American imports. Trump did not lift the tax on Canada and Mexico until 2019 when all three countries reached a deal on the updated North American Free Trade Agreement (NAFTA).
In response to the current round of tariffs, Québec Premier François Legault said he was “very disappointed” with the decision by the president and that he would be asking Prime Minister Justin Trudeau to hit the U.S. in kind. Canada has since promised a “dollar-for-dollar” retaliation beginning later in September.
“I intend to fight to defend Quebec aluminum workers,” Legault tweeted at the time.
Source: VTDigger
