Business

Carney under pressure to counter against Trump tariffs

Just this weekend, Canadian Prime Minister Mark Carney and US President Donald Trump sat together in New Jersey for the World Cup final – a send off to a joint North American tournament that has, despite criticism over ticket prices and travel costs, been widely viewed as a success.

The following day, hours after the two leaders were pictured smiling and chatting inside the stadium, the US announced a fresh round of tariffs against one of its closest trading partners.

The surprise move slapped a 50% levy on a range of goods, from hockey sticks to candles and synthetic wigs.

Canadians, however, are now used to riding out the storm, says pollster David Coletto, CEO of Abacus Data.

“Most Canadians are largely of the view that they cannot trust the Trump administration,” he said.

There remains “deep anger” among many over what they view as unfair treatment from the US, he said, adding that “most people do not want Mark Carney to cave”.

The latest round of tariffs announced on Monday, which the US said was a response to “unequal treatment” of US cars, dairy and alcohol by Canada, is only likely to firm that resolve.

The levies, which will come into force on 19 August, come as on-again and off-again talks between the US and Canada to renew the North American free trade agreement with Mexico – known as the USMCA – finally seem to be on again.

The new Gordie Howe International Bridge, which is expected to bolster trade between the car capitals of Windsor, Ontario, and Detroit, Michigan, is set to open on Monday following weeks of delays, after Canada agreed to new revenue sharing terms with the US.

And previous recent threats to tariff Canadian planes, or seek restitution over wildfire smoke that drifted south into the US, were widely dismissed as bluster from the American president.

Mahmood Nanji, a fellow at Western University’s Ivey Business School told the BBC he believes this latest move is a strong-arm tactic by the Trump administration to pressure Canada into a trade deal.

“He’s using all tricks in the bag to try to get as much leverage as he can,” he said.

Stakeholders who have been closely watching the trade file also say they aren’t completely surprised by the move.

US officials have spoken publicly about their frustration with the retaliatory tariffs Canada has imposed, noting it’s the only country besides China which has taken such countermeasures.

Candace Laing, President and CEO of the Canadian Chamber of Commerce, said in a statement that her organisation knew “this would get bumpier before landing”.

 

 

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button