Canada

Prime Minister Mark Carney showed no signs of retaliating against U.S. President Donald Trump’s increased tariffs — and even suggested he’s open to removing existing tariffs if it would help Canadian industries.

Carney faced questions Tuesday about Canada’s next steps after the two countries failed to reach a trade deal by the Aug. 1 deadline, resulting in a 35 per cent import tax on some Canadian goods. The rate applies to goods not covered by the Canada-U.S.-Mexico Agreement, which governs trade between the three countries.

The Great Negotiator at work.

Where do things stand for Canada after the United States imposed a new, higher tariff last Thursday evening?

In the short run, not much has changed. In the long run, a lot may yet change.

Since the signing of the landmark Canada-United States Free Trade Agreement in 1988, the relationship has been about ever-lower trade barriers and ever-easier movement of goods and services across the border. It was part of a global trend. Under President Donald Trump, the U.S. is reversing course, hard and fast.

Since Aug. 1, many Canadian commentators have downplayed the impact of the 35% tariffs the United States has imposed on select Canadian goods, citing the Canada–United States–Mexico Agreement (CUSMA) and its oft-repeated claim that 90% to 93% of Canadian exports remain exempt.

While technically true, this statistic masks the much more complicated — and far less reassuring —reality for Canada’s agri-food sector.

Prime Minister Mark Carney’s post-midnight response to Washington’s latest escalation of its tariff war was calm, measured, sensible and appropriate, everything the current regime in Washington is not.

Canada, Carney said, will continue to negotiate in search of a reasonable agreement, notwithstanding the absence of any indication the U.S. is open to reasonable negotiations. What Washington wants is to continue operating what amounts to a global extortion racket, threatening all America’s best customers with dire consequences if they refuse to bow to its demands and offer up supplication to whatever notion occurs to President Donald Trump at any given moment.

Is supporting Carney any better? I doubt it.

WASHINGTON, D.C. — Time’s up. On Friday, U.S. President Donald Trump raised the tariff rate on Canadian goods not covered under the Canada-United States-Mexico Agreement (CUSMA) from 25 to 35 per cent, saying they “have to pay a fair rate.” The White House claims it’s because of Canada’s failure to curb the “ongoing flood of fentanyl and other illicit drugs.” U.S. Customs and Border Protection (CBP) data, however, show that fentanyl seizures from Canada make up less than 0.1 per cent of total U.S. seizures of the drug; most smuggling comes across the Mexican border.