ADVERTISEMENT

Economics

‘This is bad news’: Former foreign minister warns on U.S.-Canada trade tensions

By Tammy Ibrahimpoor

Published: 

Playing null of undefined
Trump and Carney to meet in the coming days, but how close is a Canada-U.S. trade deal?

Trump and Carney to meet in the coming days, but how close is a Canada-U.S. trade deal?

How are U.S. border towns in Canada being affected amidst the trade war?

How are U.S. border towns in Canada being affected amidst the trade war?

‘Team Canada is still at the table’: Trade council member Volpe on Canada-U.S. trade talks

‘Team Canada is still at the table’: Trade council member Volpe on Canada-U.S. trade talks

Canada is bracing for further tension in its trade relationship with the United States, after President Donald Trump imposed sweeping new tariffs.

“This is bad news,” said former foreign affairs minister Peter MacKay in an interview with CTV News Channel Sunday.

“It’s bad news for the markets. It’s bad news for many sectors on both sides of the border. … There is a lot of impetus now to try to bring this to an end.”

Trump hit Canadian goods with a 35-per-cent tariff on Friday—targeting products not compliant with the Canada-U.S.-Mexico Agreement.

The White House said the decision was made in response to Canada’s “failure to co-operate” on stemming fentanyl imports and Ottawa’s retaliatory duties.

Trump also introduced 50-per-cent tariffs on semi-finished copper products and maintained existing duties on Canadian steel, aluminum and automobiles.

Dominic LeBlanc, Canada’s trade minister, said Sunday he expects Prime Minister Mark Carney and Trump to speak “over the next number of days” in a renewed effort to de-escalate the dispute.

MacKay, meanwhile, says high-level talks are essential, especially given Trump’s direct involvement.

“Having personal discussions with our prime minister … is probably the only way we are going to see this trade agreement finally get done,” he said.

MacKay warned that while some 75 per cent of goods crossing the border remain tariff-free, critical sectors like steel, aluminum, copper and autos are facing sharp new costs.

He also cautioned that the trade war risks turning personal.

“We’ve seen what happens, as recently as with the former Prime Minister Trudeau, when it does get personal,” he said.

“The Canadian economy ultimately and quickly pays a price.”

Trump signed the executive order late Thursday.

The Aug. 1 target date floated for a potential deal passed without progress, and there is still no clear timeline for resolution.

MacKay described this current phase as “no man’s land.”

“We are not even where we used to be,” he said.

“Let’s just hope that (Trump) doesn’t go wildly off in all directions on the eve of getting to some sort of a finish line.”

With files from the Canadian Press