John Ivison: It might be better if Canada doesn't settle with Trump just yet
Article content
After it comes into force, a Toyota RAV4 made in Japan will be charged a tariff of 15 per cent, while a similar vehicle made in Cambridge, Ont., with two-thirds North American content, will be charged a 25 per cent import levy. Trump has threatened that Canada will face a 35 per cent tariff on all goods not covered by the U.S.-Canada-Mexico trade deal (USMCA), including autos, by Aug. 1 barring any last-minute deal. Needless to say, Toyota is unlikely to continue making cars in Canada for long, if that differential remains in place.
Article content
Article content
Article content
Trump heralded his agreement with Japan as 'the largest TRADE DEAL in history' on social media.
Article content
Article content
Japan will also buy 100 Boeing planes and hike defence spending with American firms by US$3 billion a year.
Article content
The president said that Japan will 'for the first time ever' open its market to the U.S. for autos and rice, 'which was always a complete NO, NO'.
There is a kernel of truth in this typical bluster: Japan will allow simplified safety checks on U.S. vehicles, which will likely increase U.S. imports from a paltry 16,000 last year. Japan has always allowed a minimum amount of rice to enter the country tariff-free, nearly half of which comes from America. That minimum access framework will remain in place but more of the discretionary amount will come from the U.S.
Article content
Trump said he will have a say in where the Japanese invest the US$550 billion and the U.S. will receive 90 per cent of the profits. Let's check the joint text when the deal is made public to find out if this is another of the president's subtle untruths.
Article content
The old phrase 'the beatings will continue until morale improves' was not meant to be taken literally. Yet, news of the deal's terms was welcomed with the kind of euphoria that used to greet Deep Purple at the Budokan arena in the '70s.
Article content
Article content
Pre-Trump, Japan used to pay an average of 1.6 per cent in tariffs. Yet, at the prospect of 15 per cent, stock prices shot up in Japan: Toyota rose 14 per cent; Honda increased by 11 per cent. Auto stocks also rose around the world, including among the Big 3 North American carmakers that remain targeted by high tariffs.
Article content
GM said this week that it took a US$1.1 billion pounding from tariffs in the second quarter and expects the impact to worsen in the third. The prospect of the Detroit-based giant only being beaten up by a 15 per cent tariff going forward, instead of 25 per cent, saw its stock soar by 6.29 per cent on Wednesday.
Article content
Steve Verheul, Canada's former chief trade negotiator and now a principal at consultancy GT&Co., said the clear inconsistency of penalizing cars made with two-thirds North American content, combined with the losses being reported by U.S. manufacturers, should provide Canada and Mexico with leverage to get a better deal than Japan.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Toronto Sun
10 minutes ago
- Toronto Sun
Boeing braces for defence hub strike as workers reject offer
Published Jul 27, 2025 • 2 minute read An employee works on the aft fuselage of a Boeing Co. F-15 Strike Eagle fighter aircraft at the Boeing Defense, Space & Security facility in St. Louis, Mo., on Monday, July 24, 2018. Photo by Alex FLynn / Bloomberg Boeing Co. is preparing for a strike at its St. Louis defence hub after factory workers rejected a contract offer that would've boosted their wages by 20% over four years. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The International Association of Machinists and Aerospace Workers Local 837, which represents 3,200 Boeing defence workers in Missouri and Illinois, said its members voted overwhelmingly against the new terms Sunday. The Boeing proposal 'fell short of addressing the priorities and sacrifices' of the company's skilled workforce, the union said in a statement. 'Our members are standing together to demand a contract that respects their work and ensures a secure future.' While the present contract expires at 11:59 p.m. Central Time on Sunday, there's a seven-day 'cooling off' period before IAM Local 837 workers can walk off the job and shut down manufacturing in Boeing's military aircraft factories. Boeing hasn't scheduled any talks with union leaders, which typically are a precursor to a counteroffer. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. 'We're disappointed our employees voted down the richest contract offer we've ever presented to IAM 837 which addressed all their stated priorities,' said Dan Gillian, Boeing Air Dominance vice president and a senior St. Louis site executive, in a statement. Boeing's offer, which was endorsed by IAM Local 837's bargaining committee, included a $5,000 signing bonus, 8% wage increase in the first year and work schedule changes intended to improve quality of life. All-in, the contract would've boosted average wages by 40%, the company said. 'We've activated our contingency plan and are focused on preparing for a strike,' Gillian said. 'No talks are scheduled with the union.' The aerospace manufacturer faces another labour standoff as it recovers from a two-month strike by a Seattle-based Machinists union that crippled manufacturing at its commercial jet factories last year. This advertisement has not loaded yet, but your article continues below. Any labour strife would be costly for Boeing's defence division, which hasn't earned an annual profit since 2022 and is in the middle of a turnaround. A strike would shut down assembly lines for Boeing's F-15 and F/A-18 fighter jets, T-7A trainer, MQ-25 drone refueler and other weapons systems. The labour uncertainty will be a focus for analysts when Boeing reports quarterly earnings on Tuesday. It's also a bellwether as GE Aerospace launches contract negotiations with a separate IAM local on Sunday. St. Louis workers last went on strike in 1996 and don't have a history of activism, unlike Boeing's unions in the Pacific Northwest, according to Scott Mikus, an analyst with Melius Research. Union members initially rejected management's offer during the last negotiation with Boeing in 2022, before accepting a three-year deal with a 14% general wage increase and cost-of-living adjustments. While Puget Sound labour leaders endorsed Boeing's initial offer last year, they were rebuffed by rank-and-file members embittered by an earlier 10-year contract that stripped away pensions and locked in low wage increases while inflation soared. The lengthy strike squeezed the company's working capital and spurred Boeing to sell equity worth almost $24 billion. — With assistance from Bill Haubert. Sports Columnists Sunshine Girls Toronto & GTA Toronto & GTA
CTV News
10 minutes ago
- CTV News
After months of uncertainty U.S. and EU reach trade deal
Watch The U.S. and the European Union have reached a trade deal that imposes a 15% tariff on most EU exports to the U.S.
CTV News
10 minutes ago
- CTV News
‘Something pretty special': N.S. cider appellation is a first in Canada
The Nova Scotia Cider Association has launched Canada's first cider appellation called 'Red Sky.' Poet Comeau, the owner of Lake City Cider and president of the Nova Scotia Cider Association, said the cider showcases the high quality of apples grown in the province. 'I think it's just about looking at what we have here in Nova Scotia and realizing that it's something pretty special,' said Comeau in an interview with CTV's Todd Battis on Friday. 'Red sky at night, sailors' delight. Red sky in the morning, sailors take warning. It's just that connection to where we are and how unique Nova Scotia is.' Comeau said a cider can only be recognized as a 'Red Sky' if it meets certain standards. 'There's quality control, there's a blank tasting and you need to submit samples for the blind tasting to get though the qualifications. There are even things around sugar levels, acid levels, and you need to have a blend of apples and not one particular type.' There are currently nine qualifying ciders available across the province, said Comeau, with all of them being available at the NSLC around the end of August for a short period of time. Reducing interprovincial trade barriers With provinces changing rules around importing and exporting alcohol across the country, Comeau said it's important that Canadian products are being consumed by Canadians. 'I think that the best products that are made in Canada should be enjoyed by Canadians,' she said. 'It's going to take a little bit of time and reworking just because we are used to the way things used to work, but I think the idea about reducing some of those barriers is really about getting great products across Canada.' Comeau said ciders are different from other products as apples cannot grow in every climate. 'Apples don't grow everywhere. I think it makes our product a little more unique. It does create opportunities and markets where maybe they don't have cideries. I think a great way to promote something like 'Red Sky' is with that restaurant experience and pairing it with food and enjoying it with others.' For more Nova Scotia news, visit our dedicated provincial page
