Canada Seeks Last-Minute Deal Before US Tariffs Hit

Ottawa and Washington are negotiating a last-minute agreement ahead of Wednesday’s deadline, when new US trade measures are set to take effect. Canadian Prime Minister Mark Carney spoke with the US president on Monday about the ongoing negotiations.

The new 50% tariffs would apply to approximately $20bn worth of imports, regardless of whether Canadian goods qualify for preferential treatment under the trade agreement between the United States, Mexico and Canada.

US tariffs on Canadian automobiles remain one of the main points of contention. Both sides have discussed reducing these tariffs from 25% to 15% and providing further reductions based on the proportion of US-made parts in the vehicles. However, they disagree on the method of calculation.

Trade experts warn that the new measures could lead to job losses and business closures, particularly in Canada’s forestry, wine and dairy sectors.

Canadian officials have been negotiating in Washington since last week. If an agreement cannot be reached, Ottawa is considering support for affected domestic industries as well as a possible suspension of bilateral trade negotiations.

(Reuters, bak)