USA-and-Canada
US ban on nearly $1b Canadian imports takes effect amid trade tensions
US-Canada relations are likely to face further strain after the United States early Tuesday implemented a ban on nearly $1 billion worth of Canadian imports, including alcoholic beverages, dairy products and motorcycles.
The ban represents only a small portion of the nearly $880 billion in annual two-way trade between the neighboring countries. However, it marks another escalation in President Donald Trump's second-term trade war with a longtime US ally and trading partner.
The latest measure took effect at 12:01 a.m. Eastern time Tuesday and follows Trump's decision to impose 50% tariffs on about $20 billion worth of Canadian imports over allegations that Canada discriminates against US dairy, auto and alcoholic beverage producers.
Canada responded with tariffs ranging from 15% to 50% on US imports.
To punish Canada for retaliating against the US tariffs, Trump ordered the ban on a list of Canadian products. Trade attorney Patrick Childress, a partner at Holland & Knight and former US trade official, said the move would not help ease trade tensions between the two countries.
Jacob Jensen, director of trade policy at the center-right American Action Forum think tank, estimates that the ban covers about $967 million worth of Canadian imports based on 2025 figures. About 87% of the affected goods are alcoholic beverages, which were targeted after some Canadian provinces responded to Trump's measures by removing US alcohol from store shelves.
The ban also covers some dairy products, including whey, as well as motorcycles. The two countries have long disagreed over Canada's protection of its dairy industry through high tariffs once imports exceed established quotas.
Bombardier Recreational Products (BRP), based in Quebec, confirmed that its three-wheel Can-Am Spyder and Canyon motorcycles would be excluded from the US market. However, the company said the impact may not be felt until next year as most production and shipments for the current season have already been completed.
Jensen said the latest measure marked another escalation in the trade war and could prompt further retaliation from Canada. He said affected Canadian exporters and US importers would likely push trade officials on both sides to find a resolution.
The standoff also threatens efforts to renew the US-Mexico-Canada Agreement (USMCA), the North American trade pact negotiated during Trump's first term that allows most goods to move across the region's borders duty free.
Since returning to the White House last year, Trump has announced a series of tariffs, creating uncertainty over the future of regional trade. He has particularly targeted Canada and has repeatedly suggested that the country could become the 51st US state.
Canadian Prime Minister Mark Carney, who came to power last year promising to stand up to Trump, has retaliated against US tariffs while seeking to reduce Canada's dependence on the US market. The United States accounted for more than 70% of Canadian exports last year.
“There is now a price to be paid for access to the United States market,” Carney said earlier this month, as he pledged to double Canada's non-US trade over the next decade.
Carney has also backed the possibility of Canada becoming the European Union's first associate member and said trade negotiations with India were making “good progress,” with the two countries aiming to conclude talks by the G20 summit in mid-December.
Canada also struck a deal with China earlier this year allowing a limited number of Chinese electric vehicles into the Canadian market at a reduced tariff in exchange for China lowering tariffs on Canadian canola.
Gabriel Brunet, a spokesman for Canada's Trade Minister Dominic LeBlanc, said the government’s priority remained protecting Canadian workers, farmers, families and businesses from what it called unjustified US measures.
Trump, meanwhile, expressed confidence that Canada would eventually agree to a deal.
“I think a deal will be made but it's gonna be fair,” he told reporters Monday.
Trade attorney Childress said the standoff could continue for months rather than weeks, noting that the bans and tariffs imposed so far may not cause enough economic disruption to force either side back to the negotiating table.
15 days ago
Four killed in helicopter crash near Montreal
Four people were killed when a helicopter crashed southeast of Montreal in Canada's Quebec province on Saturday, provincial police said.
The helicopter reportedly experienced difficulties before crashing around 2:30pm in Sainte-Brigide-d’Iberville, about 50 kilometres southeast of Montreal, said Audrey-Anne Bilodeau, a spokesperson for the Sûreté du Québec.
Firefighters brought the blaze under control within an hour, but all four people aboard the helicopter were pronounced dead at the scene, she said.
Police have not yet identified the victims or determined the cause of the crash.
Bilodeau said the helicopter appeared to be a private aircraft.
The Transportation Safety Board of Canada has sent investigators to the crash site to determine the circumstances surrounding the accident.
17 days ago
Trump praises new British PM Andy Burnham but criticises UK deal on Indian Ocean islands
British Prime Minister Andy Burnham made a positive first impression on U.S. President Donald Trump at their first meeting on Tuesday, with Trump playing down differences over the Middle East and describing the new British leader as “a natural business person.”
The two leaders met for more than the scheduled 30 minutes on the sidelines of the U.N. General Assembly in New York, where Burnham, in his first address to the global gathering, warned about the dangers posed by unchecked artificial intelligence and socially damaging disinformation.
It was a baptism of fire for Burnham, who went from serving as mayor of Manchester in northwest England to leading a G7 country within weeks.
Despite British concerns about how the meeting would unfold, Trump said, as the two leaders sat before U.K. and U.S. flags, that trans-Atlantic relations were “more up than they were with your last prime minister.”
“Based on our relationship with the prime minister, Andy, I think we're doing very well,” Trump said.
British officials are aware that Trump can be unpredictable. He initially developed a warm relationship with Burnham's predecessor, Keir Starmer, before tensions emerged over Britain's refusal to join the U.S.-Israeli war on Iran. There was therefore relief among British officials that Burnham emerged largely unscathed from his first meeting with a president who had once dismissed him as “the mayor of a town.”
“We don't hold it against you,” Burnham said.
Burnham acknowledged differences between the U.S. and U.K., saying Trump had been “good enough to listen to us” on issues including trade and the Falkland Islands.
Trump has recently raised questions about the future of the British-controlled South Atlantic archipelago, which is also claimed by Argentina, where it is known as the Malvinas. Britain and Argentina fought a brief war over the islands in 1982.
On another potential source of tension, Britain's decision to ban trade with Israeli settlements in the West Bank, Trump said he was unaware of the issue.
Chagos Islands remain a point of contention
Trump's strongest criticism was directed at Britain's plan to transfer sovereignty of the Chagos Islands in the Indian Ocean to Mauritius.
The U.K. says the agreement would safeguard the future of the strategic U.S. military base on Diego Garcia, one of the islands. However, ratification of the deal has stalled after the Trump administration withdrew its support, and British officials acknowledge that the agreement is now in limbo.
Trump described it as “a terrible deal” involving “a very important piece of real estate, militarily and strategically.”
“I think the prime minister is going to be looking at it,” he said.
Burnham said Britain was working to reach an agreement and expressed confidence that it could do so with its U.S. partners.
Before the meeting, Burnham said he would discuss with Trump ways to end the on-and-off war between the U.S. and Iran, which has disrupted oil tanker traffic through the Strait of Hormuz and pushed global fuel prices higher.
Houthi attacks on Saudi energy infrastructure are adding to the problem, making Burnham's pledge to ease cost-of-living pressures for British voters more difficult.
As he traveled to New York for the annual gathering of world leaders, Burnham announced that he had authorized limited military support for Saudi Arabia to help repel attacks by Iran-backed Houthi rebels in Yemen.
He said a Royal Air Force plane would refuel Saudi jets involved in “defensive” operations to shoot down Houthi missiles.
Burnham also said he would urge Trump to increase U.S. support for Ukraine by providing air-defense missiles ahead of another winter of Russian attacks. It remained unclear whether he made progress on that issue.
Burnham focuses on AI in UN speech
In his address to the General Assembly, Burnham argued that Britain could play both a leading and cautionary role in the rapid development of artificial intelligence.
He said world leaders must heed warnings about AI and establish global standards to oversee the technology, because “fundamental decisions on this technology are too important to be left to chance.”
Burnham said AI has enormous potential but could also be “a source of disruption to the way we live and work – and a multiplier of risk.”
“We've all heard the warnings – which we must heed,” he said.
Burnham said the U.K. would seek to persuade other countries to adopt rules on transparency and access to AI models, while also pushing technology companies to sign up to such standards.
That could become another point of tension with Trump, who told the U.N. on Tuesday that the U.S. “totally rejects any attempt to construct a globalist scheme” to regulate AI.
Burnham also said Britain would “draw a line under the last decade” since the U.K.'s 2016 decision to leave the European Union.
He suggested that Brexit was a point when the country took a wrong turn, partly driven by misinformation.
Burnham said Russia and other states were using AI-enhanced misinformation and disinformation to undermine democracy. He said he had asked British security chiefs to establish a National Center for Information Defense to counter the threat.
“Over the last decade we have given too much ground to those who want to run a negative, corrosive narrative about life in Britain, which bears no resemblance to reality,” Burnham said. “Well, no more.”
21 days ago
Carney courts global investors as Trump seeks to draw investment to US
U.S. President Donald Trump is seeking to bring factories and investment into the United States, while Canadian Prime Minister Mark Carney is working to attract billions of dollars in capital to Canada.
Around 300 CEOs and senior executives from some of the world's largest investment firms are expected to gather this week at the Four Seasons hotel in Yorkville, an upscale Toronto neighborhood known for its luxury restaurants and designer boutiques, for Carney's Canada Investment Summit.
The investors collectively oversee more than $120 trillion in assets, highlighting the enormous pool of capital Carney hopes to attract as Canada seeks billions of dollars in fresh investment and attempts to reduce its economic reliance on the United States.
"Canada is about so much more than being next to the United States," Carney said at a news conference last week in Banff, Alberta. "We have what the world wants."
Carney highlighted Canada's abundant energy and critical mineral resources, highly educated workforce and trade agreements that provide businesses based in the country access to about 1.5 billion consumers globally.
He said the strong participation in the summit demonstrated that investors were interested in Canada for its own strengths.
"They are coming because of Canada," he said. "If they wanted to go to the United States, they would go to the United States."
Carney is particularly familiar with the investment community. He previously headed the central banks of Canada and England, spent 13 years at Goldman Sachs and later served as chairman of the boards of Bloomberg L.P. and Brookfield Asset Management.
On Monday, Carney is scheduled to meet separately with the CEOs of Sydney-based Macquarie Group, whose asset-management division is the world's largest infrastructure investment manager, and Singapore's state-owned Temasek Holdings, a major global investment firm.
A Canadian official described the summit as the largest gathering of investment decision-makers ever held in Canada, alongside Canadian CEOs presenting projects at different stages of development.
However, the official cautioned that the event is unlikely to result in a surge of deals during the summit itself, with the most significant outcomes expected over the next 12 to 18 months. The official spoke on condition of anonymity because they were not authorized to discuss the matter publicly.
Trade war raises stakes
The summit comes at a crucial time for Canada. Trade negotiations broke down on Aug. 21, after which Trump imposed 50% tariffs on about $20 billion worth of Canadian goods, prompting retaliatory measures from Canada.
Washington subsequently escalated the dispute by announcing restrictions on some Canadian imports and moving to exclude Canadian products from major long-term U.S. government contracts.
Trump's tariffs and efforts to shift manufacturing to the United States are weakening one of Canada's longstanding attractions for foreign investors: dependable access to the huge U.S. market under continental free trade.
Carney and Canadian business leaders will seek to persuade global investors to look beyond the trade dispute and increase their investments in Canada.
Carney is also drawing a clear contrast between Canada and Trump's United States, presenting his country as a stable, rules-based alternative to an increasingly unpredictable U.S. market.
Investors coming to Canada will find "a country that respects rule of law and a country that is reliable," Carney said.
"That combination is pretty rare in the world," he said. "And it's an attractive combination."
Carney reinforced that message Sunday, telling Canadian business leaders that the country's greatest strength was something "that cannot be found on any balance sheet: trust."
John Graham, CEO of CPP Investments, one of the world's largest institutional investors and manager of Canada Pension Plan assets, is helping host the summit. He said the fund evaluates investment opportunities in Canada alongside opportunities elsewhere in the world.
"The conversation about Canada is changing," Graham said.
Summit seeks to channel global capital into Canadian projects
The summit is intended to connect global investors, including Canada's major pension funds, with large-scale projects in critical minerals, technology, defense, advanced manufacturing and energy.
According to a Canadian official, Carney's private meetings with investors will be tailored to their portfolios and the types of projects they are considering financing.
BlackRock CEO Larry Fink and Blackstone President Jon Gray are scheduled to lead a public discussion on global capital, while former Conservative Prime Minister Stephen Harper is expected to deliver the closing address.
Carney will then travel to Europe, where he is scheduled to address the European Parliament later this week as Canada seeks to develop a broader strategic partnership with the European Union.
29 days ago
Trump widens trade war with Canada beyond tariffs
The United States has widened its trade confrontation with Canada, banning imports of some Canadian dairy products, motorcycles and most alcoholic beverages after Ottawa imposed retaliatory tariffs on about $20 billion worth of US goods.
US President Donald Trump also moved to exclude Canadian products from major, long-term US government contracts, taking the dispute beyond tariffs as relations between the two longtime allies continue to deteriorate.
The latest US restrictions, due to take effect Sept 29, cover various Canadian wines and spirits, some motorcycles and mopeds, dairy products including whey, and certain types of molasses.
Canada's new tariffs took effect early Tuesday and cover hundreds of US products, including steel, aluminum, cheese, appliances, clothing, cosmetics and farm equipment. The rates range from 15% to 50%.
Canada says the measures match US tariffs on a dollar-for-dollar and rate-for-rate basis and affect about 6% of the $333.6 billion worth of goods the United States exported to Canada last year.
Eight of Canada's 10 provinces have also maintained restrictions or bans on US alcohol. The Distilled Spirits Council said US spirits exports to Canada have fallen more than 70% year over year following those measures.
Trump directed the US General Services Administration to bar Canadian products from large federal contracts until Canada provides what he called “full and fair reciprocity” for American goods.
The latest escalation follows the collapse of Canada-US trade talks on Aug 21. Since then, Trump and his administration have stepped up tariffs and threats against Ottawa.
Canadian Prime Minister Mark Carney has warned that US demands could weaken key Canadian industries and undermine the country's economic independence. Trump's repeated comments about making Canada the 51st US state have instead fueled nationalist sentiment and strengthened support for Carney.
Carney said Canada's response is increasingly focused on reducing its dependence on the United States.
“It’s about ensuring that no country can hold us hostage,” he said.
The dispute is particularly significant because the two countries have deeply integrated economies and long-standing defense and security ties. Before relations deteriorated, around 400,000 people crossed their shared border each day.
Carney is also seeking closer economic ties with the European Union as Canada looks to diversify its trade relationships. He is scheduled to address the European Parliament next week.
Trump's trade pressure has also raised concerns about Canada's auto and steel industries. He has threatened 50% tariffs on Canadian vehicles, auto parts and steel next year if Ottawa does not comply with US demands.
Canadian officials warn such tariffs could severely disrupt North American manufacturing supply chains, where parts and finished vehicles cross the border multiple times during production.
Despite Canada's economic dependence on the US market, Ottawa has some leverage. US refineries rely on about 4 million barrels of oil a day from Canada, while American farmers depend heavily on Canadian potash fertilizer.
Canada's economy grew at an annualized rate of 3.2% in the second quarter, compared with 1.5% growth in the United States.
Canadian Industry Minister Mélanie Joly expressed confidence that Ottawa could prevail.
“I’m convinced that we will be able to show the world that Canada will win this trade war,” she said.
1 month ago
What to know about Canada's escalating trade war with the US
Canada struck back at U.S. President Donald Trump on Tuesday with tariffs on about $20 billion worth of U.S. goods, in response to the latest round of tariffs on Canada.
The outcome could resonate far beyond Canada, showing other governments whether a smaller U.S. ally can withstand Trump’s economic pressure.
Canadian Prime Minister Mark Carney says U.S. demands could hollow out key Canadian industries and limit the country’s independence, while Trump’s threats to Canadian sovereignty have rallied the public behind him.
“Carney and Canada have become symbolic of resistance to him,” Canadian historian Robert Bothwell said. “And what he’ll want to do is make an example of Carney and Canada and theoretically terrify everybody else while in fact showing them that they need to remove themselves even further from the United States.”
The tariffs hit hundreds of American products, including steel, aluminum, cheese, appliances, clothing, cosmetics and farm equipment, at rates of 15%, 25% or 50%.
Here’s what to know.
Canada retaliates with tariffs on hundreds of US products
Canada says its tariffs match Washington's dollar for dollar and rate for rate. They take effect at 12:01 a.m. Tuesday under an executive action known as an order in council and cover about $20 billion in American goods, roughly 6% of the $333.6 billion the United States exported to Canada last year.
RBC Economics, the research arm of the Royal Bank of Canada, said the measures were unlikely to dent U.S. growth overall but could hit some businesses hard.
Canada has already gone beyond tariffs in other ways. Eight of its 10 provinces continue to restrict or ban sales of U.S. alcohol. The Distilled Spirits Council says U.S. spirits exports to Canada fell more than 70% year over year after those restrictions took effect.
1 month ago
'Stop trying to be tough': Carney hits back at Trump as US-Canada trade dispute escalates
Canadian Prime Minister Mark Carney on Tuesday urged the Trump administration to "stop doing memes, stop throwing shade and stop trying to be tough" as he responded to a fresh round of attacks from Washington amid an escalating trade dispute.
Carney said trade negotiations between the United States and Canada could resume if Washington became serious about reaching an agreement. At the same time, he accused the US of seeking terms that could result in Canadian industries being "gradually wound down in Canada and wiped out."
"When the Americans stop doing memes, stop throwing shade and stop trying to be tough, and start being serious about having those discussions, we can have those discussions," Carney said. "It's not constructive, but that's their democracy."
His remarks came amid renewed criticism from Washington after trade talks between the two countries broke down on Aug. 21.
US President Donald Trump has proposed renaming Lake Ontario "Lake America" and mocked Canada on social media. US Treasury Secretary Scott Bessent also said Canada could not engage in a "tit for tat" trade dispute with an economy 13 times larger.
US Defense Secretary Pete Hegseth meanwhile mocked the Canadian military in an online post Monday, sharing an image of two female cadets at a British Columbia training center with the words "this is real" and a Canadian flag.
Carney described the post as "beneath their office." The Pentagon stood by the post on Tuesday, saying, "The X post speaks for itself."
Bessent, speaking to Fox News, responded to Carney's criticism by saying the Canadian prime minister had received a "verbal beatdown" from him and Hegseth.
Asked about Carney's call for the Trump administration to stop "throwing shade" and return to negotiations, Bessent said, "Well, he was the one who said we were at war."
Carney said the US negotiating position would have effectively turned Canadian industries into subsidiaries of American companies or imposed conditions under which they would be "gradually wound down in Canada and wiped out."
"We're not going to — of course, we're not going to accept those terms," Carney said.
The prime minister said Washington was seeking an "uncompetitive" agreement for key sectors, including the automobile industry, while also demanding changes involving French-language and cultural protections.
He said any one of those issues would have been sufficient to prevent an agreement.
Carney also said Washington wanted restrictions on Canada's ability to negotiate future trade agreements with other countries.
"Canada is a sovereign state. We will strike free trade deals with the countries we wish to strike free trade deals," he said.
However, Carney acknowledged that the negotiations had included some "mutually beneficial" elements before they collapsed.
The prime minister also received a political boost Monday when the Liberal Party won all three special elections, including a decisive victory in Chicoutimi-Le Fjord in Quebec, where the Conservatives finished third.
The victories increased the Liberals' strength to 173 seats in the 343-member House of Commons and strengthened Carney's position as he faces Trump over trade and Canadian sovereignty.
Nelson Wiseman, professor emeritus of political science at the University of Toronto, said Trump's repeated annexation threats have particular significance in Quebec.
"Quebecers have the most to lose in an apocalyptic scenario where the U.S. absorbs Canada, and the status of the French language disappears," he said.
The latest trade talks collapsed after the two countries failed to reach an agreement, prompting Trump to impose 50% tariffs on about $20 billion worth of Canadian goods.
Canada's retaliatory tariffs on nearly $20 billion of US goods are scheduled to take effect Sept. 8, with duties ranging from 15% to 50%.
Trump has repeatedly suggested that Canada should become the 51st US state.
1 month ago
Trump orders to rename Lake Ontario as ‘Lake America’
US President Donald Trump on Thursday ordered Lake Ontario to be referred to as “Lake America” in the United States, escalating his ongoing trade dispute with Canada.
Trump signed an executive order in the Oval Office directing the US geographic naming authority to update the lake’s name.
The order applies to the US naming system, but Trump has no authority to require Canada to adopt the new name, as Lake Ontario is shared by the two countries.
The move echoes Trump’s decision last year to rename the Gulf of Mexico as the “Gulf of America” for US government use.
Lake Ontario is one of the five Great Lakes of North America and lies along the US-Canada border.
1 month ago
Canada to announce retaliatory tariffs as Trump tells leaders to 'fall in line'
Canada is set to announce retaliatory tariffs against the United States on Tuesday after relations between the two countries deteriorated sharply, with President Donald Trump telling Canadian leaders to “fall in line” or face consequences “far WORSE” than the tariffs already in place.
Trump also threatened to impose new 50% tariffs on Canadian vehicles, auto parts and steel, while Canadian Prime Minister Mark Carney accused Washington of seeking to subordinate Canada.
Finance Minister François-Philippe Champagne and three other Cabinet ministers are expected to announce details Tuesday morning of support measures for workers affected by the tariffs.
Carney said Monday that Canada may need to move away from matching U.S. tariffs dollar-for-dollar and instead adopt more targeted retaliatory measures aimed at protecting Canadian workers and businesses.
“An attitude at the negotiation table that Canada is a subsidiary of the United States” is “not something we're going to accept,” Carney said.
Speaking in French, Carney was even more direct, saying Canada had learned during the negotiations that the United States wanted to “destroy our major industries, including autos, steel and aluminum.”
“That was one of the main reasons we said no. It was a bad deal,” he said.
The strong remarks from both sides reflect the sharp deterioration in U.S.-Canada relations since Carney ended trade negotiations with the Trump administration late Friday, prompting Trump to threaten 50% tariffs the following day on about $20 billion worth of Canadian goods.
Canada and the United States have one of the world's largest trading relationships, with highly integrated supply chains spanning automobiles, energy, agriculture and manufacturing. A prolonged trade dispute could therefore impose significant costs on businesses and workers in both countries.
Carney questioned Washington's reliability, saying Canada was finding dependable partners “everywhere in the world, except in the United States. Except in the United States. And Russia.”
Trump attacks Canadian leaders
Trump on Monday announced further tariff threats, saying he would impose new measures on Canada's auto industry beginning next year.
“Canada has been ripping off the United States of America for years,” Trump wrote on social media, criticizing what he described as Canada's “ridiculously high tariffs” on American farmers.
Carney said Washington's proposed measures against the auto sector would gradually dismantle Canadian vehicle production.
“This is the most successful automotive partnership in history,” Carney said, referring to the closely integrated Canada-U.S. auto industry.
Ontario Premier Doug Ford also criticized Trump, saying in an interview with The Associated Press that the U.S. president had underestimated Canadians' willingness to withstand economic pressure rather than give in to Washington.
“We're all in,” Ford said. “Up here, we're at a fever pitch; everyone's in for an economic war. They know they're going to have to sacrifice.”
Trump responded by personally attacking Ford, calling him “the less charismatic, intelligent, and overall unimpressive brother of the late, great, Rob Ford,” while again referring to Carney as “Governor Carney.”
Ford dismissed the remarks, saying: “If you think an insult from him hurts me? Well, bring it on, buddy, I'm ready.”
Ford is a Progressive Conservative while Carney is a Liberal, but both have emphasized broad political unity in Canada over the trade dispute.
Ford threatens critical minerals and electricity
Ford said “everything is on the table” if the dispute escalates, including potentially cutting off electricity and critical minerals supplied by Ontario to the United States.
Critical minerals have become increasingly important to U.S. national security and manufacturing. The Pentagon has sought more secure supplies of minerals used in military aircraft, missiles, munitions and electronics as Washington works to reduce its dependence on China, which dominates the mining or processing of several strategically important minerals.
Ford said Canada should consider tougher retaliation if Trump continues targeting Canadian industries, including oil and potash. Ontario, he said, could increase electricity prices or halt power exports to the United States.
“We power 1.5 million homes and businesses,” Ford said. “Everything's on the table. I'll do whatever it takes.”
Ford previously used electricity as leverage during an earlier stage of the dispute, when Ontario imposed a 25% surcharge on electricity exported to Michigan, Minnesota and New York. Trump responded by threatening to double tariffs on Canadian steel and aluminum before both sides stepped back.
Auto industry at center of dispute
Ford accused Trump of seeking not merely a better trade agreement but of weakening Canadian industries and shifting production to the United States.
“He wants to bleed out every single sector and bring them down to the U.S.,” Ford said.
The auto sector is particularly important to Ontario, Canada's main vehicle manufacturing hub. Plants and suppliers in the province are closely connected to factories in Michigan and other U.S. states, with auto parts frequently crossing the border several times during production.
Automakers including Ford, General Motors and Stellantis operate major assembly plants in Ontario, while the broader supply chain supports tens of thousands of jobs. Trump's proposed 50% tariffs on Canadian vehicles and parts therefore place the industry at the center of the escalating dispute.
U.S. Trade Representative Jamieson Greer said Monday that “the only reason Canada has auto production in the first place” was the 1960s Auto Pact, under which Canada used access to its market to encourage vehicle production in the country.
Ford opposed preliminary deal
Ford also said he had opposed a preliminary agreement that Carney was considering before Canada ended the negotiations. He said he was unwilling to restore American liquor products to Ontario store shelves as part of a deal.
“I wasn't going to put the booze back on the shelves,” Ford said. “I was ready to go out there and call a press conference … and say I'm not buckling over.”
Ford said Washington had sought language late in the negotiations that would have limited Canada's ability to negotiate trade agreements with other countries without U.S. approval. Carney has rejected the demand as unacceptable and a matter of Canadian sovereignty.
Carney said the dispute had also highlighted deeper differences over language and culture, with protections for French and Canadian culture that Washington considers trade irritants regarded as fundamental rights in Canada.
“Who does he think he is?” Ford said of Trump. “You gotta be kidding.”
1 month ago
Canada vows retaliation as US trade talks collapse
Canada has vowed to retaliate against new US tariffs as trade negotiations between the two longtime allies have broken down, escalating tensions between the neighboring countries.
US President Donald Trump’s 50% tariffs on a range of Canadian imports took effect Saturday, covering about 5% of Canada’s annual exports to the United States, or roughly $20 billion in goods.
Canadian Prime Minister Mark Carney said Ottawa would respond with dollar-for-dollar tariffs starting Sept 8.
Trump on Monday threatened further tariffs of 50% on Canadian automobiles, auto parts and steel from next year, accusing Canada of unfairly targeting American products.
“Canada has been ripping off the United States of America for years,” Trump said in a social media post, criticizing what he described as excessively high Canadian tariffs on US farmers.
The latest escalation followed the collapse of trade talks last week. Carney ended the negotiations after concluding that Washington was demanding too much in exchange for tariff relief.
Ontario Premier Doug Ford warned that Canada could take further retaliatory steps if the dispute worsens, including restricting exports of electricity and critical minerals to the United States.
“I’ll cut them off,” Ford said, adding that “everything is on the table.”
Ford also criticized Trump’s trade policies, saying former US President Ronald Reagan would have been deeply opposed to the approach.
US Trade Representative Jamieson Greer blamed Canada for the breakdown in negotiations, saying Ottawa continued to maintain restrictions on US wine, spirits, dairy products and automobiles.
Greer said Washington had offered to reduce steel and aluminum tariffs by half and substantially lower auto tariffs but that Canada sought concessions beyond what the US was prepared to provide.
He also downplayed concerns about a wider trade war, saying the tariffs affect only a small portion of bilateral trade.
Greer said he was preparing possible responses for Trump to Canada’s planned retaliatory tariffs but did not disclose details.
The dispute is an important test for Carney, who has argued that middle powers must resist economic pressure from larger countries even when doing so carries economic costs.
Carney has vowed to defend Canada’s interests rather than yield to US tariff demands, saying Ottawa is prepared to withstand the economic pressure and respond to Washington’s measures.
1 month ago