Canadian-U.S. Trade Talks Resume Amidst Provinces' Divided Front

Strategic Insights -

Canadian Prime Minister Mark Carney is facing mounting pressure as trade talks with the U.S. continue in Washington, with Canadian provinces beginning to separate in their stance against U.S. tariffs. Canadian Ambassador Kirsten Hillman and U.S. Commerce Secretary Howard Lutnick are meeting in a renewed effort to lift U.S. sectoral tariffs, which President Donald Trump has justified under Section 232 of the U.S. trade law. Meanwhile, Canadian provinces are vying for relief from punitive tariffs, with Ontario Premier Doug Ford calling for countertariffs and B.C. Premier David Eby criticizing Ottawa's handling of U.S. softwood tariffs.

Key Takeaways:

  • The Canadian provinces are showing a divided front against U.S. tariffs, with Ontario Premier Doug Ford calling for countertariffs and B.C. Premier David Eby criticizing Ottawa's handling of U.S. softwood tariffs.
  • The Prime Minister's Office has announced that Canadian Ambassador Kirsten Hillman and U.S. Commerce Secretary Howard Lutnick have resumed talks in Washington to lift U.S. sectoral tariffs.
  • Canadian Auto Workers will be impacted as General Motors is set to lay off 700 workers in Oshawa this fall and has announced a US$4-billion investment in American auto plants.
  • Conservative Leader Pierre Poilievre has criticized Prime Minister Carney for failing to reach a deal with the Americans and leaving thousands of auto workers without a clear future.
  • The U.S. tariffs have had a significant impact on the Canadian economy, with tariffs on steel, aluminum, forest products, and automobiles causing losses to key Canadian sectors.

Statistics:

  • 10% tariffs on softwood lumber have come into effect, bringing the total tariff on such products to 45%.
  • 50% tariffs have been imposed on Canadian steel and aluminum, and 25% tariff on Canadian autos.
  • 700 General Motors workers in Oshawa are set to lose their jobs this fall.
  • 3,000 Stellantis auto workers are in the lurch after the company moved a production line to the United States.
  • US$13 billion has been invested by Stellantis to boost U.S. production.

Sources:

  • Robert Fife, "High-level trade talks between Canadian and U.S. officials have resumed in Washington", The Globe and Mail, [no publication date mentioned]
  • Robert Fife, The Globe and Mail, [no publication date mentioned]
  • The Prime Minister's Office, Statement on Stellantis, November 4, 2022.