New tariffs on Canadian goods were scheduled to take effect at midnight unless President Trump and Canadian Prime Minister Mark Carney could reach a last…
New tariffs on Canadian goods were scheduled to take effect at midnight unless President Trump and Canadian Prime Minister Mark Carney could reach a last minute agreement, capping weeks of tense negotiations over autos, dairy, alcohol and metals that could reshape trade between the two countries for years.
50 Percent Duties Loom Over a Narrow Slice of Trade
Last month Trump announced 50 percent tariffs on a range of Canadian goods, arguing that Canada engages in discriminatory trade practices involving automobiles, alcohol and dairy products. Analyses cited by Yahoo Finance suggest the immediate economic impact would be limited, since the new duties apply to roughly 5 percent of the Canadian goods the United States imported last year. The tariffs would be imposed under Section 338 of the Tariff Act of 1930, a provision that permits duties as high as 50 percent.
Even if the direct hit to the broader economy looks modest, the outcome carries weight well beyond the affected products. Whether the two sides strike a deal or let the tariffs proceed could signal how far apart they remain on renewing the US Mexico Canada Agreement, known as USMCA, which was not renewed when it came up in July. That pact now sits in a period of annual reviews and would not fully expire until July 1, 2036, if no new agreement is reached before then.
Talks Described as Intense, With Autos the Sticking Point
Carney told reporters Monday that negotiations were