Trump revives trade war with Canada
The negotiations to avoid tariffs between the North American partners fail at the last minute and Ottawa claims its position of strength
BarcelonaThe three-day extension of negotiations that the United States and Canada granted last Wednesday for to reach a trade agreement and avoid new tariffs have run out without progress. On Friday night, talks between the parties failed; and the 50% tariffs on all Canadian products imposed by United States President Donald Trump have taken effect this Saturday. The new import tax will affect about $20 billion in Canadian products.
Following the breakdown of negotiations, the parties have exchanged recriminations, each accusing the other of being responsible for the failure. The Trump administration's trade representative, Jamieson Greer, has pointed to Prime Minister Mark Carney's executive for "refusing to finalize the trade agreement on the terms agreed upon earlier in the week." According to Greer, Ottawa's new demands and the failure to meet several acquired commitments would have "disrupted a carefully established agreement".
In statements to the conservative television network Fox News, the trade representative assured that "there are no new talks planned with Canada". "They could have had the best possible deal, but they didn't want it," accused Greer.
A "new attack on Canada"
Shortly after the breakdown of talks, Carney announced trade retaliation against the United States that would match Trump's new tariffs "dollar for dollar" "to protect the country's workers and businesses." The Canadian trade response will take effect on September 8. In a statement shared on his social media, the prime minister accused US negotiators of having tried to impose "last-minute changes" to the agreement that the Canadian side considered "unfair." As a result of these modifications, "trust in any deal was called into question" and negotiations ended.
Specifically, as the prime minister said in a press conference this afternoon, US representatives intended to modify the agreements on the automotive sector, with demands that "would make their production no longer economically viable" in the country. Carney also denounced Washington's attempt to "restrict Canada's ability to enter into other trade agreements."
In his appearance, Carney further raised his tone against Trump's trade strategy. The new tariffs, the prime minister defended, "are a new attack on Canada, and they only attack you when there is a war." According to the leader, Ottawa is in a "stronger position than when the US launched the trade war." In this regard, he justified the refusal of the agreement with Washington: "We are not willing to compromise Canada's sovereignty, nor to weaken our fundamental industries," he sentenced.