Carney Rejects Ford's Call to Revive Counter-Tariffs Against US

Strategic Insights -

Prime Minister Mark Carney rejected Premier Doug Ford's call to revive retaliatory counter-tariffs against the United States, citing sensitive negotiations with U.S. President Donald Trump aimed at securing tariff relief for the steel, aluminum, and energy sectors. Carney emphasized that the negotiations with the U.S. are "deep and intensive" and that reviving counter-tariffs would be premature. In response, Ford had urged Carney to retaliate against U.S. tariffs, which have affected various sectors, including steel, aluminum, and autos. Carney acknowledged discussions with Trump about the KXL pipeline expansion project but refused to disclose the details.

Key Takeaways:

  • Prime Minister Mark Carney rejected Premier Doug Ford's call to revive retaliatory counter-tariffs against the United States.
  • The prime minister cited sensitive negotiations with U.S. President Donald Trump aimed at securing tariff relief for the steel, aluminum, and energy sectors.
  • Carney emphasized that the negotiations with the U.S. are "deep and intensive" and that reviving counter-tariffs would be premature.
  • Canada is facing punishing 50 per cent U.S. tariffs on steel and aluminum shipments, 25 per cent tariffs on autos and auto parts that are not U.S.-made, and a range of other sector-specific tariffs.
  • The prime minister acknowledged discussions with Trump about the KXL pipeline expansion project but refused to disclose the details.
  • Alberta Premier Danielle Smith applauded Carney's "very pragmatic approach" to the U.S. negotiations, citing the plan to sell more heavy oil to the U.S. in exchange for lifting tariffs on steel and aluminum.
  • Carney's government has acknowledged that Canada is in a relatively better position than any other U.S. trading partner when it comes to most tariffs, thanks to Trump's exemption for Canadian-produced goods that comply with North American or American content rules.
  • The Canada-U.S. talks are aimed at securing side agreements on key sectors ahead of the expected review of the Canada-U.S.-Mexico Agreement (CUSMA) next year.
  • Carney underscored that the bulk of the steel sector is in Ontario and that he wants to make progress in the negotiations.

Statistics:

  • $356 billion: the amount of goods Canada buys from the U.S. annually, making it the number-one customer to the U.S.
  • 35 per cent: the so-called "border emergency" tariffs imposed by Trump on Canadian-produced goods that do not comply with North American or American content rules.
  • 50 per cent: the U.S. tariffs on steel and aluminum shipments.
  • 25 per cent: the U.S. tariffs on autos and auto parts that are not U.S.-made.
  • 45 per cent: the U.S. tariffs on lumber products.
  • 50 per cent: the U.S. tariffs on copper.
  • 25 per cent: the U.S. tariffs on wooden cabinets, furniture, and heavy trucks.

Sources:

  • Toronto Star
  • Mark Ramzy
  • Robert Benzie