August 18, 2023 – In a bid to avoid a midnight tariff deadline in Washington, D.C., Canadian negotiators are working tirelessly to strike a last-minute deal with their U.S. counterparts.

Source: cdnph.upi.com

U.S. Trade Representative’s Expectations

U.S. Trade Representative Jamieson Greer has been leading the talks with Canadian representatives, and last week, he expressed his expectations that Canada would drop certain measures it has taken in response to the U.S. tariffs. According to The New York Times, Greer stated that if a country retaliates against the U.S., they will not tolerate it and will take action.

Greer’s comments were made in response to President Donald Trump’s threats to impose 50% tariffs on $20 billion worth of Canadian goods, including cement and hockey sticks. The President’s remarks were made during a Las Vegas speech on August 5, where he referred to Canada as ‘nasty.’

Canadian Prime Minister’s Phone Call with Trump

Canadian Prime Minister Mark Carney and President Trump had a phone call on Monday, a Carney spokeswoman confirmed. However, no further details were provided about the conversation.

In July, the Trump administration announced its intention to create new tariffs of 50% on more than 500 Canadian goods, amounting to up to $20 billion worth of trade annually. This represents about 2% of the entire trade between the United States and Canada.

The White House released a statement at the time, saying that President Trump was taking action to hold Canada accountable for its continued discrimination against and unreasonable treatment of U.S. commerce, which has burdened and disadvantaged hard-working Americans.

Canadian Lumber Industry’s Plea

Canadian negotiators also want to ease the tariffs already imposed on its industries, including the steel, aluminum, and autos sectors. The Canadian lumber manufacturing CEO, John Brink, has spoken out about the devastating impact of the tariffs on his industry. He stated that most of the lumber industry in Canada is paying up to 45.16% in tariffs and duties combined, which has led to a significant decline in the industry’s capacity.

According to Brink, about half of British Columbia’s lumber manufacturing capacity has shut down, and the industry has gone from 800 secondary manufacturers to just 50. While not all the decline can be attributed to tariffs and duties, the combination of factors has had a devastating effect on the industry.

Experts Weigh in on the Situation

Scott Reid, a CTV News political commentator, has expressed his concerns about the deadline, saying it will be ‘the most important, most significant and most treacherous of Mark Carney’s political career.’ He also questioned whether the U.S. is genuinely interested in securing an agreement or if President Trump’s objective is simply to flex his muscles and demonstrate his control.

Former senior official in Prime Minister Justin Trudeau’s government, Brian Clow, has also shared his insights on the situation. He stated that Canadians elected Mark Carney to stand up to Trump while also negotiating a deal to reduce the tariffs. Clow warned that if no deal is made, the trade war will escalate, and Canada will have to respond in some way.

On the other hand, former senior White House trade adviser Kelly Ann Shaw expressed her optimism about the negotiations, saying they look ‘promising’ for Canada. She drew parallels with other international trade negotiations, where the hardest issues are often resolved at the last minute. Shaw predicted that any announcement may come as late as midnight.