"On Trade, and in other ways, also, they are among the worst Nations in the World to deal with."
"They feel entitled, and yet, WE DON'T NEED CANADA, THEY NEED US!"
"[Canada is one of the most] entitled [countries to deal with in terms of trade]."
"[Canada] wants the benefits of being a State, without being one."
U.S. President Donald J. Trump
"As
we drilled down, what we discovered was that what our understanding of
what had been agreed to was quite different from what was showing up in
the documents. When that kind of happens once or twice, it's kind of
understandable, but when it happens consistently, and every
interpretation is the most negative interpretation [then it] got to a
point [where they walked away]."
"That's
just something we could not accept [dispute over tariff of medium and
heavy vehicles] because we want to protect the existence of an
automotive assembly industry in Canada for cars, light trucks, you know,
medium trucks and heavy duty trucks."
"We're
disappointed. We worked hard, but at the end of the day, the terms that
were put forward on a deadline -- that was created by the United States
-- it didn't work for us."
"[The
U.S.] has changed its view of economic partnership [and] in the face
of that, Canada, among other things, has said that we will look to
diversify. So we have to ensure that any agreement we would come to with
the United States does not constrain our ability to create trading
relationships, open and free trading relationships with other
jurisdictions."
"We're
just not willing, at the end of the day, to accept terms that were
unfair, uneconomic and actually, you know, called into question the
reliability of the deal."
"Because
you know one of the things that you'd hate to see happen is you agree
on something and then, after agreeing to it, it gets undermined."
Mark Wiseman, Canadian ambassador to the United States
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| President Trump's notional 'next up' |
A
range of issues contributed to the collapse of the trade talks between
the U.S. and Canada. The written text of a potential deal failed to
match what the Canadian side believed it had agreed to. Following the
collapsed talks when the Canadian delegation walked away from a deal
both sides felt would finally be the solution to the awkward, prolonged
trade talks between the two neighbours, political and security allies
and for the most part, longstanding friendly relationships, the U.S.
took steps to apply a punishing 50 percent tariff on some $20 billion in
Canadian goods.
Canada
was faced with little option but to respond in kind, a retaliation that
the U.S. warned would cost Canada even more once Canada's move takes
effect on September 8. Further escalation of U.S. tariffs is now a
certainty, although it remains unclear whether there will be a
resumption of negotiations between the present and the September 8
date.
There
was a dispute over tariff treatment of medium and heavy vehicles with
the U.S. resisting cutting tariffs, despite Canadian negotiators
explaining that they are produced by both General Motors Co. and Ford
Motor Co., automakers with operations in Canada. That balking on reduced
tariffs for those vehicles fits right into President Trump's
oft-repeated urging for American manufacturing integrated with Canadian
counterparts in shared production, be put to a stop, for U.S. companies
to withdraw their Canadian presence and return to full manufacturing in
the United States.
 |
| Richmond Plywood Corporation in Richmond, B.C., says it has paused its
U.S. sales because importers won't pay the 50 per cent tariffs and the
company can't absorb the cost. (Bhavjit Thandi) |
Another
contentious issue for Canada is the heavy tariffs on Canadian steel
exports aluminum and lumber. President Trump is fond of repeating that
Canada has nothing that the U.S. needs or wants, but the United States
has everything that Canada desires. Canadian electrical energy, oil and
liquid natural gas exported to the United States is critical to American
energy needs. Without Canadian steel and aluminum and lumber the costs
of domestic architecture in the U.S. will deal a blow to U.S. consumers
in higher construction costs for houses.
U.S.
trade negotiators introduced another unexpected item when the demand
was made that Canada pedal back on its search for alternative trade and
export routes to other countries. Separate trade agreements with other
nations to swerve away from total dependence of exporting Canadian goods
and services to the United States did not sit well with the Trump
administration. Other U.S. trade irritants are issues such as American
spirits that are currently black-listed from entry to Canada in a
retaliatory move against unfair trade practices that include new and
growing tariff inclusions on goods meant to be protected under the
Canada-U.S.-Mexico agreement (CUSMA).
 |
| The federal government is laying out
its plan to hit the U.S. with dollar-for-dollar counter-tariffs that
will impact around 700 different American products. CTV |
New
issues brought to the negotiating table such as bilingual
French-English signage on U.S. exports to Canada have surprisingly
cropped up, when for as long as trade has existed between the two
countries the two official language requirements for export to Canada
have been routine. "It
is non-negotiable, in terms of our ability to protect - and to not just
protect, but to be able to enhance and grow the French language in
Canada, in Quebec and in the rest of Canada. Those that want to do
business in Canada, be it digital or anything else, must respect that
fundamental reality", observed Ambassador Wiseman.
President
Trump's constant goading of Canada, referring to the nation as the 51st
State, calling its prime ministers 'governors', his AI-assisted videos
with the U.S. flag superimposed over the northern half of North America,
his complaints that Canadians for some unknown reason don't care for
his style, have not endeared him to the Canadian public. As a result of
the new U.S. tariffs imposed on Canada, 87,000 Canadian jobs have been
placed at risk and the Canadian unemployment rate bloat to 6.8.
Canada
is prepared to respond with counter tariffs on U.S. steel, dairy,
appliances, electronics and other products. Canada's economy will be
hurt, and it won't take very much longer before the American economy too
will feel the pain. Canada exported $454 billion in goods and services
to the U.S. last year, much of it in energy, while importing $426
billion, according to U.S. Commerce Department data.
"We're
going to need a suite of programs, probably not unlike we did through
the COVID era, to support working people and the industries that they
depend on", observed Lana Payne, national president of Unifor, representing workers in the automotive as well as other sectors in Canada.
"The last thing we need right now, as our economy is getting back on its feet, is a trade war with Canada". opined former Trump earlier administration vice-president Mike Pence.
 |
| Ottawa announced new support support for workers and businesses facing U.S. tariffs. CTV |