Can Trump’s latest trade fixed GST and mutual charges?

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Sources said that after President Donald Trump announced Thursday that Mutual fees would be imposed on “unreasonable” trade practices from other countries, Canada’s public sales tax may be a potential target.

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Two senior Canadian government sources considering Canada’s GST as a fee on Thursday with Radio-Canada on Thursday, raising the issue during his call with Prime Minister Justin Trudeau on February 3.

Trudeau is said to have pointed out many US states such as Florida, with their own sales taxes, Trump’s issue Canada has federal sales tax, no US.

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Here you need to know about the latest destination on the list of Trump’s growing payment threats.

Why does Trump get a problem with GST?

Mark Warner, the trade expert of the MAAW Act, appears to be a list of all issues that the United States refuses with all the issues that Trump’s Memorandum on US goods, fees and unreasonable and discriminatory taxes-include Canada’s GST.

However, Warner believes that Trump’s problems with Canada are essential or new, and pointed out the concerns in Canada’s policy of former President Joe Biden’s Digital Services Tax (DST) and Paul.

“The difference between Trump and his predecessors is that he is ready to go to the limits of his administrative power to force the change of other countries.”

Canada’s GST came into effect in 1991, changing the manufacturer’s sales tax from 1924, and Warner said it had objected to it at the time.

When Canadian companies export their goods to the United States, they can apply for GST waiver. However, when American companies send their goods beyond the border, GST is still charged.

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“This has never been raised on controversy,” Warner said, “It is very important to negotiate that the US may have other trade issues with Canada. “It does not mean that Americans don’t think this is a problem. I think they thought this was a problem from the first day.”

How does GST compare with other sales lines?

Trump’s Memorandum Value added taxes (Wat) is a potential trading irritation, which justifies mutual fees. The common watt in the EU is a type of consumption tax that is imposed on a good or service value at each stage of the distribution chain.

The average standard watt rate of the EU is 21.8 percent. 5 per cent of GST in Canada, a compatible sales tax (HST) for provinces – Integrated Federal and Provincial Taxes and goods and services – 15 percent (Ontario exception is 13 percent).

Joseph Steinberg, a co -professor of the University of Toronto, agreed, “GST is similar to that of that sense.

However, Steinberg noted that GST is not only applicable to the United States but also for other countries.

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Steinberg pointed out the Digital Services Tax (DSD) to highlight the White House in the Trump’s mutual fee plan, especially US services.

“(GST) is too far away to say that a fee is a fee,” said Steinberg, who said that Trump could use this as a negotiating trick to achieve concessions on other matters.

How much does Canada cost for mutual fees?

It is not yet clear how the United States will go on implementing mutual fees for each country, and it is not yet clear whether all goods and services will be a blanket fee or a good basis on a good basis.

For example, Warner suggested that the Trump’s team could consider how much Canada should collect from the tax and input of digital services.

Considering the Free Trade Agreement, Canada has relatively lower fees to start on US imports, which means that Steinberg is not particularly expensive for Canada, considering the free trade agreement.

“I can’t see a world that can justify something than three or four percent in Canada,” he said, where Trump is already near 25 percent of the fees that have already been threatened, and it can be very harmful.

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What to do to make Canada?

Trump’s Business and Economic Group will study the US fare and trade relations, and aims to end these reviews by April 1.

Steinberg and Warner suggested that Canada could be free from the tax of its digital services and seek other ways to make meaningful offers to avoid mutual fees.

For example, experts shared concerns that Canada’s distribution management system could also be a potential target. In the past, Trump has expressed dissatisfaction with the organization, which is working on production allocation, price sites and by setting up import restrictions on milk and chickens.

Warner also pointed out the rules of controversy that Canada and Mexico won the United States in 2022, which called the United States a “sore spot.” The United States sought to include more North American parts of cars to avoid fees, but it ruled that it would violate the new Canada-US-MEXICO Agreement (Kasma).

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