MONTREAL: Despite efforts to stay onside with President Donald Trump, Canada remains in the crosshairs of his aggressive trade agenda, with Trump now threatening a 35 per cent tariff on Canadian imports starting August 1.
Negotiators on both sides are scrambling to finalise a new trade deal by July 21.
While goods covered under the United States-Mexico-Canada Agreement (USMCA) would be exempt, the process has proved painful for Ottawa.
“This shows how difficult it is for Canada to negotiate with the US president,” said McGill University’s Daniel Beland, calling Trump’s abrupt moves a challenge.
Trump’s tariff threats are part of a broader push to upend free trade norms and force trading partners—friends and foes alike—into concessions. He has even floated the idea of making Canada the 51st US state, a notion widely rejected by Canadians.
Relations hit a low during Trump’s first term, with friction between him and then-PM Justin Trudeau. Optimism returned after Mark Carney took office in April, promising to defend Canadian interests. Two cordial meetings with Trump followed, with an agreement to sign a new accord by July 21.
But talks were derailed in June after Canada introduced a tax on US tech giants. The levy was quickly scrapped, only for Trump to raise the tariff threat again this week.
Carney offered a measured response: “The Canadian government has steadfastly defended our workers and businesses.”
While some Canadians favour a harder line, others prefer continued diplomacy. “Trump sees Canada as vulnerable and a likely win on tariffs,” said University of Ottawa’s Genevieve Tellier.
Before Trump’s presidency, 75 per cent of Canada’s exports went to the US. That share dropped to 68 per cent in May—an all-time low—as Canada ramps up trade elsewhere.
“This isn’t a negotiation between equals,” said Philippe Bourbeau of HEC Montreal. “Canada will have to give up more.” – AFP
