How to resolve AdBlock issue? Peacock eyes US tariffs on Canada for colourful SME global trade solutions
By Leon Gettler, Talking Business >>
THE TRADE WAR between the US and Canada will have a global impact.
Kyle Peacock, the principal of Peacock Tarriff Consulting with offices in Canada and the US, said US President Donald Trump had used Canada as a testing ground for his global tariffs reset.
“Is it more on Canada or is it more worldwide? I think Canada was a test,” Mr Peacock told Talking Business.
“Only 5% of our goods were going to the US so it wasn’t a large, critical mass. I think we’re seeing if this one holds up, and it if does, if they (the US) want to use it on China or Europe or Australia, then that will be available.
“Unfortunately, Canada was the pilot project. I think he’s (President Trump) surprised there’s been as much push back to it as Canada has had.” 
China, Canada only ones to counter-tariff
Significantly, Canada and China are the only two countries that have responded to Trump’s tariffs with counter-tariffs.
“We’re seeing there’s a lot of political rhetoric from both sides of the border and political fallout so it’s really pitting country versus country,” Mr Peacock said.
“Our border was the largest unmanned border in the world and that seems to be not the case going forward here.”
Canada’s counter-tariffs are highly strategic. They are designed to see US exporters putting pressure on the US Government.
“They were very strategic with the tariffs that were applied on specific industries and, I’d say, specific states based on the states that would have the most pressure on the US administration,” Mr Peacock said.
Canadian tariffs very strategic
The Canadian counter-tariffs are on cosmetics, clothing, furniture, printed matter, packaging, plaster products, and charcoal.
“A lot of products (counter-tariffed) are US-manufactured but Canadian-resourced, so we’re talking about the lumber, the paper products,” he said.
“Anything along those lines that are encountering a tariff on the way into the US. Those products are manufactured and shipped back to Canada at a higher price.
“So it’s really making those (US) states that manufacture these parts uncompetitive in the Canadian market based on not only the US tariff of Section 338 but the counter-tariffs.
“So these are very strategic in how they have been placed.
“There will be a cost to the Canadian consumer but also the cost will be to the US exporter into Canada, making the product not as competitive versus the rest.”
The bizarre warping of tariffs for economic attack
Section 338 of US Tariff Act of 1930 allows the US President to place extra taxes of up to 50% on goods from any foreign country that treats US products ‘unfairly’ or ‘discriminates against US companies’.
“Anyone in trade understands that the US Administration didn’t dust off a 100-year-old law that’s never been used and brought it out just to tariff maple syrup and hockey equipment,” Mr Peacock said.
The fact that Canada is placing its counter tariffs on copper wire and aluminium means Canada is also hitting the US auto industry,
“There are very few disciplines or industries that I think the administration bows to and the automotive industry is one of those that has a very strong reach in Washington,” Mr Peacock said. 
“And copper – being as expensive as it is – as well as adding tariffs on top of that.”
www.peacocktariffconsulting.com
Hear the complete interview and catch up with other topical business news on Leon Gettler’s Talking Business podcast, released every Friday at www.acast.com/talkingbusiness
https://shows.acast.com/talkingbusiness/episodes/talking-business-34-interview-with-kyle-peacock-from-peacock
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