Canada Weighs U.S. Trade Deal to Avoid 50% Tariffs on $20 Billion in Exports
Updated
Updated · The New York Times · Aug 21
Canada Weighs U.S. Trade Deal to Avoid 50% Tariffs on $20 Billion in Exports
3 articles · Updated · The New York Times · Aug 21
Summary
Saturday’s deadline leaves Prime Minister Mark Carney’s government deciding whether to accept a U.S. trade pact that Canadian officials say remains incomplete despite signs of progress in Washington.
Three hours of talks on Thursday left trade minister Dominic LeBlanc saying the sides were “very close,” but negotiators were still haggling over steel, aluminum and autos rather than just finishing paperwork.
U.S. proposals would cut some Canadian steel and aluminum tariffs to 25% from 50%, with steel quotas, and lower auto tariffs to 15% from 25% with credits for American parts; Canada is pushing back, especially on autos.
Auto rules under the USMCA are also in play, with Washington seeking 82% North American content and 50% U.S. content, changes Canada and Mexico oppose as harmful to integrated regional production.
Canada has already moved toward one U.S. demand by asking provinces to restore American wine and spirits, while the outcome could shape Mexico’s parallel USMCA talks and the future of North American manufacturing.