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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Ontario’s economic development minister announced the province will challenge a potential 100% U.S. tariff on foreign-produced films, deploying its resources to fight the measure in Washington. This follows U.S. President Trump’s announcement of the tariff, a move that Ontario Premier Doug Ford condemned. The proposed tariff threatens to severely damage Canada’s film industry, potentially eliminating 30,000 jobs and $2.6 billion in economic activity in Toronto alone. Ontario is also pursuing additional measures, including a five percent increase to the Ontario Made Manufacturing Investment Tax Credit, to support businesses against this and other potential economic threats from the U.S.
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Canada’s real GDP fell 0.2 per cent in February, primarily due to a 0.6 per cent decline in goods-producing industries, particularly mining and oil and gas extraction. While service-producing industries also contracted slightly, the manufacturing and finance sectors showed growth. However, early March data suggests a 0.1 per cent GDP increase, pointing towards a moderate 1.5 per cent annualized growth rate for the first quarter. Experts attribute February’s decline largely to severe winter weather, but anticipate potential economic headwinds from the ongoing US-China trade war in the second quarter.
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In response to U.S. tariffs on Canadian automobiles, Canada imposed retaliatory tariffs of 25 percent on U.S.-assembled vehicles, effective April 9th. These tariffs target vehicles with non-Canadian or non-Mexican content, impacting approximately 1.2 million vehicles annually imported from the U.S., Canada’s largest automotive export market. The counter-tariffs, potentially increasing Canadian vehicle prices by 15-25 percent, will remain in effect until the U.S. removes its tariffs. This escalation stems from President Trump’s earlier imposition of tariffs on Canadian-made autos and auto parts.
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Prime Minister Mark Carney denounced Donald Trump’s new tariffs on imported vehicles as a direct attack on Canada’s auto sector, vowing retaliation and a fundamental reshaping of Canada’s economy to reduce US dependence. This includes a $2 billion investment to bolster the auto industry, alongside development of other key sectors like critical minerals and AI. Carney confirmed upcoming talks with Trump, emphasizing the need for diversified trade relationships and strategic economic autonomy for Canada. He acknowledged the challenges ahead but stressed the necessity of this economic shift given the deterioration of the Canada-US relationship.
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Prime Minister Mark Carney declared the old Canada-U.S. relationship over in response to President Trump’s escalating tariffs, announcing a plan to fundamentally reimagine Canada’s economy. This includes retaliatory measures, reducing internal trade barriers, and diversifying away from U.S. reliance, with details of the response to be released on April 2nd. Carney plans to speak with Trump soon, emphasizing the need for cooperation and respect for Canadian sovereignty. A key component of the plan involves a strategic response fund and “backwards integrating” the auto supply chain to bolster domestic production.
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Canadian steel and aluminum plants are laying off workers, a direct consequence of US tariffs. This isn’t a new phenomenon; the cyclical nature of the industry is often exacerbated by the political climate south of the border. The current situation, however, feels particularly acute, leaving many workers feeling betrayed and uncertain about the future. The impact extends beyond the immediate layoffs, triggering anxieties in related sectors like residential construction where the availability and cost of materials are crucial.
The resentment towards the imposition of these tariffs is palpable. Many view them as a stab in the back, a reckless act by a previous administration that has devastating consequences for Canadian workers and families.… Continue reading
Canada is preparing a strong response to what’s being perceived as an attack from the US, and imposing tariffs is a very real possibility. This isn’t just a federal response; provincial governments, like Ontario’s, are heavily involved, recognizing the significant impact on their automotive industry centers such as Windsor, Brampton, Etobicoke, Markham, and the Waterloo region—the heart of the Great Lakes auto cluster.
The situation is viewed with a seriousness that goes beyond mere economic considerations. There’s a widespread sentiment that the current US administration is actively harming its own interests, both domestically and internationally, and that this behavior warrants a forceful counteraction.… Continue reading
President Trump announced 25-percent tariffs on imported vehicles and auto parts, impacting the USMCA agreement and decades of free trade between the U.S. and Canada. These tariffs, justified under Section 232 of the Trade Expansion Act of 1962, aim to boost domestic manufacturing but are condemned by industry experts and Canadian officials as economically damaging. The move threatens significant job losses in Canada’s auto sector and disrupts cross-border supply chains, increasing costs for consumers in both countries. Despite opposition, Trump maintains the tariffs will be beneficial for the U.S. auto industry.
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Prime Minister Mark Carney and Canada’s premiers agreed to create a national trade strategy aiming for nationwide free trade by Canada Day, focusing on easing restrictions across transportation, energy, critical minerals, and digital connectivity. This strategy, coupled with new measures such as a streamlined project approval process and temporary EI changes, aims to bolster Canada’s economy amidst a trade war with the U.S. The plan also includes significant investments in carbon capture and storage and removing interprovincial trade barriers to increase the Canadian economy by $250 billion. The initiative follows recent U.S. tariffs and Trump’s comments regarding Canadian sovereignty.
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John Q. Hosedrinker 
Matt Underwood