2 weeks ago
Carney Calls US Trade Measures Modest as Canada Avoids Retaliation
The United States announced new trade restrictions against Canada.
They include bans on some Canadian goods and limits on certain Canadian companies.
Some businesses in Canada may be hurt by the changes.
Prime Minister Mark Carney said the overall effect should be modest.
He suggested Canada will not answer with another round of trade penalties.
Instead, Canada plans to strengthen its own economy and find more trading partners.
Earlier talks between the two countries broke down in August.
The new restrictions may not start for about three weeks, so officials could continue negotiating.
The United States announced new import bans on Canadian goods, including alcohol, whey proteins and motorcycles.
The measures also restrict Canadian companies’ access to United States government contractors and revise products subject to 50% tariffs.
Prime Minister Mark Carney said the measures will hurt some businesses but have a modest overall impact.
Carney signaled that Canada does not plan to retaliate, instead emphasizing domestic economic strength and trade diversification.
The restrictions are expected to begin in about three weeks, leaving time for further Canada-United States talks.
- Who
- Prime Minister Mark Carney, the Canadian government, and the administration of United States President Donald Trump.
- What
- The United States announced new import bans, contractor restrictions and changes to 50% tariff coverage for Canadian products; Canada signaled it would not retaliate.
- Where
- The measures concern trade between Canada and the United States; Carney discussed them in Banff, Alberta.
- When
- The United States announced the measures on September 8; they are expected to take effect in about three weeks.
- Why
- The measures followed the collapse of Canada-United States tariff talks on August 21 and Canada’s counter-tariffs on September 8.
Key facts
- Announced measures
- Import bans, restrictions involving United States government contractors, and changes to products subject to 50% tariffs.
- Affected goods
- Alcoholic beverages, whey proteins and motorcycles were among the goods identified.
- Estimated trade value
- The import bans will affect about $1 billion in United States imports from Canada.
- Canada’s response
- Mark Carney signaled that Canada is not planning additional retaliation.
- Earlier negotiations
- Canada-United States talks collapsed on August 21.
- Expected start
- The promised import bans are set to take effect in about three weeks.
- Economic assessment
- Bloomberg analysts said the measures were unlikely to have a macroeconomic impact on either economy but would maintain uncertainty.
Quotes
Mark Carney
Prime Minister of Canada
“We fully recognize that for individual companies and in individual sectors, these are significant. I would also recognize that in the context of other things that the US administration has done — other measures US administration has done — that these are relatively modest measures.”
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“We think there is a mutually beneficial deal possible that respects our sovereignty and is in the interests of both countries. So that’s a possibility.”
livemint.com
Sources
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