Canada Braces for New US Tariffs Amid Ongoing Trade Negotiations
Canada is bracing for new US tariffs that could lead to job losses in struggling industries. The tariffs, set to start on [no specific date mentioned], will affect Canadian imports including wine, furniture, dairy products, cement, clothing, fishing rods, hockey equipment, and other goods.
The 50% tariffs are part of a hardline approach by US President Donald Trump toward trade with Canada since his return to the presidency last year. The move is expected to impact nearly $20 billion worth of Canadian goods, which amounts to about 5.2% of the total value of US imports from Canada in 2023.
Prime Minister Mark Carney has declined to discuss details of negotiations with the United States, but expects to speak with Trump before the deadline. Canada's minister responsible for US trade relations, Dominic LeBlanc, and chief trade negotiator, Janice Charette, have stepped up talks with their US counterparts.
Auto tariffs on Canadian-made vehicles are a key sticking point in the talks, according to two sources. The new duties will apply even to products that qualify for preferential treatment under the US-Mexico-Canada Agreement (USMCA), which could pose an added risk to Canada's economy.