Trump Tariffs Loom Over Canada as Last-Minute Talks Intensify
Canada's Prime Minister Mark Carney held urgent talks with US President Donald Trump on Monday in an effort to avoid fresh US tariffs on Canadian goods. The midnight deadline for implementing the duties is Wednesday.
The tariffs, which will affect products such as wine, hockey sticks, and cement, were signed by Trump last month due to alleged 'discriminatory treatment' of US alcohol, automobile, and dairy products in Canada.
According to Oxford Economics, these duties target around 5.5 percent of Canada's exports to the United States, worth about $20 billion. The impact on Canada's economy is considered modest, but Oxford Economics notes that it would severely affect central Canada's manufacturing sector.
Canadian negotiators have been in Washington pushing for a deal to avoid new tariffs and secure relief on Trump's sector-specific duties, which have battered Canada's auto, steel, lumber, and aluminum industries. Ottawa has reportedly offered concessions such as pressuring provinces to put US alcohol and wine back on their shelves.
Former US commerce official Christopher Padilla expects that the Trump administration threatened new tariffs to try and win early concessions from Canada. He warns that even if officials reach a pact acceptable to both sides, it might be rejected by Trump due to other political concerns.