Canada’s negotiations in the customs dispute with the USA. Now the Canadian government wants to prove good will and raises numerous retaliation tariffs. The talks with Washington should be intensified.
Canada wants to lift a large part of his retaliation tariffs on US imports. “Canada and the United States have now restored free trade for the vast majority of our goods,” said Canadian Prime Minister Mark Carney.
From September 1st, goods that are covered by the North American free trade agreement USMCA are to be excluded from September 1st. Among other things include agricultural products, consumer goods and machines. The United States recently made it clear that they would not raise tariffs to Canadian goods that were compliant with the agreement. Canada now follows up, said Carney. However, the tariffs on US cars, steel and aluminum remained for the time being.
Canada hopes for new impetus in the conversations
With the loosening of the tariffs, Carney’s government hopes to bring new momentum into the stuck discussions about a strategic agreement with the Trump government. Carney emphasized that Canada’s access to the US market is currently comparatively good and 85 percent of bilateral trade was already duty. “While we are working on the solution of open trade questions with the United States, it is important and essential that we do everything we can to get this unique advantage for Canadian employees and Canadian companies,” he said.
US President Donald Trump described the step as “nice”. He had a good conversation with Carney on Thursday and will call him again soon. The two countries have been negotiating new economic and security relationships for months – but so far without results.
Domestic Challenge
Canada had answered the trade war initiated by Trump with sharp measures. The neighborhood relationship between the two countries has been tense for months – also because Trump had repeatedly flirted with wanting to annex Canada. This rhetoric was less and less heard from the White House.
The now announced step could become a challenge for Carney. His governing liberals only have a minority of the seats in parliament and are dependent on the support of the opposition. The chairman of the conservative, the largest opposition party, accused Carney this week to run too soft to the United States. Carney had won the election in April with the promise to oppose the tariffs of Trump, but has gradually mitigated his tone since then.
