Canada-US trade dispute

Trump Delays Canada Tariffs: Canada’s “Do Nothing” Strategy Succeeds

Trump quietly holds off on Canada tariff increase, and it’s interesting to unpack what seems to be going on here. It appears that the Canadian government has, in a way, adopted a “do nothing and win” strategy, reminiscent of a tactic we’ve seen employed by the Chinese government. The U.S., meanwhile, seems to be grappling with its own internal issues.

The narrative suggests that the United States will circle back to Canada when it’s ready to engage in meaningful dialogue. The entire situation brings to mind the old saying, “keep your friends close, and your enemies closer.” The focus is on the long game.… Continue reading

Harper’s Advice to Carney: A Shift Away from the US?

At the Midwestern Legislative Conference in Saskatchewan, former Prime Minister Stephen Harper advised the current government to diversify Canada’s trade partners, due to an over-reliance on the U.S. Harper called the trade war a wake-up call, suggesting Canada’s economic dependence on a single market is unwarranted. U.S. Ambassador Pete Hoekstra emphasized the need for a strong manufacturing sector, while Saskatchewan Premier Scott Moe discussed the potential use of provincial resources as leverage in trade negotiations. The conference, attended by leaders from four Canadian provinces and eleven U.S. states, focuses on finding common ground and sharing regional success stories, such as carbon capture technology.

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Carney: Canada Won’t Settle for Bad US Tariff Deal

Canadian Prime Minister Mark Carney has stated that Canada will not accept a “bad deal” in its trade negotiations with the United States, amidst escalating tariffs imposed by the Trump administration. The US has already implemented tariffs on Canadian goods, including steel and aluminum, prompting Canada to consider counter-measures to protect its key industries and overall economy. The deadline of August 1st looms as President Trump threatens new tariffs, further straining the relationship between the two major trading partners. The Canadian government is focused on securing a trade agreement that benefits Canadians, not simply reaching a deal regardless of the terms.

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Canada Relents on Digital Tax Amid US Trade Negotiations: A Disappointing Concession?

In an effort to secure a comprehensive trade agreement with the United States, the Canadian government is taking action. Minister of Finance and National Revenue, François-Philippe Champagne, announced the rescinding of the Digital Services Tax (DST) in anticipation of a mutually beneficial partnership. Prime Minister Carney and President Trump have set a target of July 21, 2025, to finalize the deal. The DST, initially implemented in 2020 to address taxation gaps from large tech companies, will be halted, and legislation to repeal the Digital Services Tax Act will be introduced.

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Canada Defends USMCA, Rejects Trump’s Quick Deal Demands

Canada will not rush into a new trade agreement with the U.S. or replace the USMCA with a less formal executive agreement, prioritizing stability and fair arrangements for its industries over speed. While eager to remove U.S. tariffs on Canadian goods, particularly impacting the auto, steel, and aluminum sectors, Canada seeks a robust, binding agreement rather than a hastily negotiated deal. Discussions on security and critical minerals will proceed separately from USMCA renegotiations, scheduled for 2026. Although the recent White House meeting yielded no immediate progress, Canada remains confident in its ability to navigate these complex trade relations.

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Trump Falsely Claims US Does Little Business With Canada

President Trump’s statement that the US does “not do much business” with Canada is demonstrably false; official US data reveals Canada as the top buyer of US goods and services in 2024, purchasing approximately $440 billion. His assertion of a $200 billion annual US subsidy to Canada is also inaccurate, with the actual 2024 goods and services trade deficit totaling around $36 billion. These discrepancies highlight significant inaccuracies in Trump’s characterization of US-Canada trade relations.

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Canadian Exports Diversify Amidst US Slump

In March, Canadian exports to the U.S. fell 6.6 percent due to newly implemented tariffs, while imports from the U.S. decreased by 2.9 percent. This decline was largely offset by a significant 24.8 percent surge in exports to other countries, suggesting potential for market diversification. However, economists caution that this may be temporary and that sustained growth requires substantial infrastructure investment. While Canada’s overall trade deficit narrowed, the long-term impact on exports remains uncertain, particularly if the U.S. economy weakens due to escalating trade tensions.

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