3 weeks ago
Carney Seeks Broad Tariff Relief as Trump's 50% Levy Looms
Canada and the United States are next-door neighbors that trade a lot with each other.
Lately, the American president has been putting extra taxes, called tariffs, on things Canada makes, like steel and cars.
He says these taxes are about safety, but Canada thinks they are unfair.
Now America has said it will add even bigger taxes of 50% on more Canadian-made things unless Canada changes some rules.
Canada's leader, Mark Carney, wants a deal that removes all of these extra taxes, not just some of them.
Leaders from both countries are meeting and talking, hoping to agree before the deadline.
Canada says it has ways to fight back if needed, but it does not want to stop sending oil to America.
Both sides are trying to find a fair agreement before the big deadline arrives.
Canada and the US are negotiating a trade deal ahead of an Aug. 19 deadline, when Trump has threatened new 50% tariffs on Canadian-made goods.
Carney says Canada wants all Section 232 tariffs — covering steel, aluminum, autos and lumber — addressed, not just the US 'irritants.'
US Trade Representative Jamieson Greer cited Canada's auto counter-tariffs, dairy trade controls and provincial liquor bans as irritants.
Carney says Canada 'has options' to retaliate but has ruled out using Canadian oil as a trade weapon.
A revived proposal under discussion would set a tariff quota giving Canadian steel and aluminum imports a lower US tariff.
- Who
- Canadian Prime Minister Mark Carney, US President Donald Trump, and their trade officials including Jamieson Greer, Dominic LeBlanc and Janice Charette
- What
- Negotiations over a potential Canada-US trade deal and Trump's threatened new 50% tariff on Canadian-made goods, with Carney pushing for relief on all Section 232 tariffs
- Where
- Canada and the United States, including meetings in Toronto and Washington
- When
- Ongoing talks, with a US deadline of Aug. 19; Carney spoke Wednesday in Toronto
- Why
- Trump threatened the new tariffs unless Canada addresses US 'irritants' such as auto counter-tariffs, dairy trade controls and provincial liquor bans
Canada's Position
US Position
Scope of trade talks
Canada's Position
Carney wants all Section 232 tariffs in all strategic sectors addressed, seeking a comprehensive agreement rather than a narrow one.
US Position
US officials focus on specific 'irritants' — Canada's auto counter-tariffs, dairy trade controls and provincial liquor bans — and have given no Section 232 relief.
Provincial liquor bans
Canada's Position
Canadian provinces pulling US-made alcohol from liquor agency shelves serve as leverage in the negotiations.
US Position
The provincial liquor bans are unfair irritants that Canada should remove; US officials frequently complain about them.
Steel and aluminum tariffs
Canada's Position
A tariff quota allowing a certain amount of Canadian metal at a lower duty is a constructive path toward a deal.
US Position
Trump has declined broad relief, and even the UK's lower-tariff steel pact 'can always be changed.'
Key facts
- Trade deal deadline
- Aug. 19
- Threatened new US tariff
- 50% on a fresh basket of Canadian-made goods
- Tariff legal basis
- Section 232 of the US Trade Expansion Act (national security)
- Affected Canadian sectors
- Steel, aluminum, autos and lumber
- US 'irritants' cited
- Auto counter-tariffs, dairy trade controls, provincial liquor bans
- Proposal under discussion
- Tariff quota for Canadian steel and aluminum imports
- Current steel/aluminum duty
- 50% on most foreign-made steel and aluminum since last June
- Leverage ruled out by Carney
- Using Canadian oil as a trade weapon
Quotes
Mark Carney
Prime Minister of Canada
“"Canada’s been very clear: We want all 232s addressed, all strategic sectors."”
livemint.com
Sources
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