Canadian Prime Minister Mark Carney and U.S. President Donald Trump held a phone conversation ahead of the entry into force of new 50% U.S. tariffs on some Canadian imports. Carney’s office reported this on Tuesday, August 18, UNN writes.
Details
The new duties are set to take effect at midnight on Wednesday and cover approximately $20 billion worth of Canadian imports. They will apply regardless of whether the goods qualify for preferential treatment under the trade agreement between the United States, Mexico, and Canada (USMCA).
U.S.-Canada trade talks have stalled over auto tariffs18.08.26, 06:47
Prime Minister Carney and President Trump spoke by phone yesterday afternoon about the ongoing trade negotiations
According to Reuters sources, one of the main sticking points remains U.S. tariffs on Canadian automobiles. U.S. and Canadian officials are also discussing the possibility of reducing the tariff on automobiles to 15%.
Trade dispute
Representatives of Canadian businesses warn that the new tariffs could lead to job cuts and business closures in the most vulnerable sectors, including the forestry, wine, and dairy industries.
Every year, we import billions of dollars’ worth of goods that were previously unaffected but are now at risk of significant impact
Canadian and U.S. automakers are also opposing the possible 15% tariff. At the same time, the trade dispute could complicate broader negotiations over the future of the USMCA, which previously protected a significant portion of Canadian industry from U.S. tariffs.