Negotiators fear U.S. tariffs will be imposed, as provinces and Washington dig in on demands
- On Wednesday, the U.S. government will impose a 50% tariff on US$20 billion of Canadian goods, utilizing Section 338 of the Tariff Act of 1930 as the legal basis for enforcement.
- The administration's plan, announced last month, relies on an obscure legal tool dating back to the Great Depression, prioritizing trade enforcement over traditional diplomatic negotiation channels.
- Bradley Saunders, a North America economist with Capital Economics, warned the tariffs risk stalling CUSMA talks by reigniting tit-for-tat trade measures and dampening business confidence.
- Canada's near-term gross domestic product is likely to suffer as a result of these impending duties, though Saunders suggests a recession remains unlikely.
- Securing a last-minute trade deal would likely force Ottawa to surrender significant bargaining leverage, weakening Canada's position in future CUSMA negotiations.
9 Articles
9 Articles
Faced with Donald Trump’s devastating tariff threat, which will enter into force on Wednesday, Canada continues to negotiate a trade agreement that will allow it to avoid tariffs and obtain additional relief on tariffs in key sectors. However, despite meetings between Canadian and US negotiators over the past three weeks, the two countries have not been able to break the deadlock in recent days, according to the CBC.
The latest round of U.S. tariff threats could complicate the renegotiation of the trade agreement between Canada, the U.S. and Mexico, according to an economic report.
Winnipeg Free Press
Looming spate of U.S. tariffs could weaken Canada's stance in CUSMA talks: economist
An economic report says the latest bevy of threatened U.S. tariffs could spell trouble for the renegotiation of the Canada-U.S.-Mexico trade agreement.
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