Trump Administration Mulls Tariffs on Canada Over EU Ties

Canadian Prime Minister Mark Carney's push for closer ties with Europe has sparked concern in Washington. The Trump administration is considering imposing tariffs on Canada, echoing the EU-style trade measures it has applied to other countries.

In a recent interview, Ambassador Pete Hoekstra suggested that if Canada aligns itself too closely with the European Union, the US could simplify its trade relations by applying the 15% tariff ceiling imposed on most EU exports. This would effectively put Canada under the same trade agreement as the EU.

However, this proposal is met with skepticism from some experts, who argue that it is not a legal path for displacing the current CUSMA (Canada-US-Mexico Agreement). They point out that Article 32.10 of the agreement allows for termination if one member signs a free-trade agreement with a qualifying non-market economy.

Richard Stern, vice president of the Plymouth Institute for Free Enterprise at Advancing American Freedom, dismissed Hoekstra's suggestion as 'trying to stir up trouble' and 'separate America from its closest allies'. Alfredo Carrillo Obregon, a trade policy analyst at the Cato Institute, agreed that Article 32.10 would not apply in this case.