Carney and Trump in Last-Ditch Trade Talks as Midnight Deadline Looms

The clock is ticking for Canada and the US to reach an agreement on trade tariffs before midnight tonight. Mark Carney, the governor of the Bank of England, spoke with Donald Trump yesterday in a last-ditch effort to avoid 50% tariffs on Canadian goods. The major obstacle to an agreement appears to be the tax rate on foreign cars, with Canada seeking a reduction from 25% to 10%, while the US is holding firm at 15%. Experts warn that even a 15% tariff would devastate Canada's auto sector and lead to closures.

Canadian businesses are also anxiously awaiting news of a deal, with many fearing the impact of 50% tariffs. A cable manufacturer in Ontario warned that such tariffs would 'lose all' of their business immediately. The Canadian Federation of Independent Business vice-president, Jasmin Guénette, agreed that business owners are 'afraid' of the potential loss.

However, not everyone is as concerned about the impact of a USMCA collapse. Tony Keller, a columnist for The Globe and Mail, wrote an essay arguing that losing free access to the world's largest economy would have only a 'surprisingly small impact' on Canada. According to Keller, studies suggest that a loss of CUSMA would lead to 102,000 job losses in Canada and a hit of one percentage point to GDP growth in 2027.