Latest news with #CanadaUnitedStatesMexicoAgreement
Global News
11-07-2025
- Business
- Global News
As Trump threatens Canada with 35% tariff, Carney says he'll defend workers
Prime Minister Mark Carney says Canada will continue to defend its workers and businesses in negotiations for a U.S. trade deal with what he calls a 'revised deadline of August 1' after President Donald Trump made his latest tariff threat. 'Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses,' Carney wrote in a post on X on Thursday night. 'We will continue to do so as we work towards the revised deadline of Aug. 1.' Carney's post came only a few hours after Trump said a tariff of 35 per cent would be imposed on 'Canadian products sent into the United States, separate from all Sectoral Tariffs.' Trump said the new tariff would take effect Aug. 1. The president's letter once again referenced fentanyl allegedly 'pouring into' the U.S. from Canada as a primary reason for the increased duties. Story continues below advertisement However, he also cited previous complaints of trade deficits and Canada's supply management in the dairy sector. The U.S. government's own statistics showing miniscule amounts of fentanyl entering the U.S. from Canada were buttressed earlier this month by a report from New York think tank The Manhattan Institute, which found 99 per cent of the pills and 99 per cent of the powdered form of the drug entering the U.S. in the last decade came from Mexico. 0:41 Trump announces 35% tariffs on Canada, set to begin Aug. 1 'Canada has made vital progress to stop the scourge of fentanyl in North America,' Carney wrote. 'We are committed to continuing to work with the United States to save lives and protect communities in both our countries.' Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy A U.S. administration official on background said that goods under the Canada United States Mexico Agreement (CUSMA) will remain exempt from the 35 per cent tariff. Energy and potash exports to the U.S. will also remain at 10 per cent. Story continues below advertisement The official cautioned no final decisions by Trump had been made. The new threat comes as Canada and the U.S. are locked in negotiations over a wider economic and security agreement, with July 21 set as a target date. Global News has reached out to the Prime Minister's Office to inquire if this date has changed following Carney's post suggesting a new Aug. 1 deadline. The 35 per cent tariffs, according to Trump, are separate from tariffs on the automotive industry, and on steel and aluminum exports. Trump has also vowed a new 50 per cent tariff on copper and 200 per cent tariff on pharmaceuticals, which would also impact Canada. More than half of its copper exports go to the U.S. Industry Minister Melanie Joly earlier Thursday vowed to 'fight' the copper and pharmaceutical tariffs. The president said there would be no tariff if Canada or companies in the country 'decide to build or manufacture product within the United States,' adding the U.S. would do everything to get approvals quickly if this happens. However, he also warned that if Canada decides to raise its tariffs on the U.S., it would add that amount onto the 35 per cent tariff. Story continues below advertisement This warning isn't new, however, as Trump has warned other countries of doing the same should they raise their duties as a response. The prime minister in his post went on to say the government, alongside provinces and territories, are 'making significant progress in building one Canadian economy.' 'We are poised to build a series of major new projects int he national interest,' Carney wrote. 'We are strengthening our trading partnerships throughout the world.' —with files from Global News' Simon Little
Global News
03-07-2025
- Business
- Global News
Canada's exports to the U.S. fell again in May as trade war continues
The Canadian economy showed signs that it has been working to pivot away from doing business with the United States, according to new data from Statistics Canada. That comes as U.S. President Donald Trump's tariffs and trade war have forced many businesses to seek alternative trading partners to avoid impacts and higher costs. 'Trade diversification is still advancing, and we're seeing encouraging gains in other markets,' says principal economist Andrew DiCapua at the Canadian Chamber of Commerce. 'The worst may be behind us, but the road back will likely be uneven.' In May, Statistics Canada reports the total amount of merchandise exported increased by 1.1 per cent compared with April, led by metals including gold, silver and platinum to countries like the United Kingdom, as well as non-metallic mineral products. Story continues below advertisement Imports fell 1.6 per cent, marking the third straight monthly decline, the agency said, which helped narrow the overall trade deficit from $7.6 billion in April to $5.9 billion in May. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy A trade deficit occurs when the amount an economy imports, or buys, is more than the amount it exports, or sells. 5:12 How close is Mark Carney to striking a deal on tariffs with U.S. President Donald Trump? The agency also reports that in May, the amount Canada exported specifically to the U.S. fell by 0.9 per cent, marking the fourth consecutive monthly decline. Although expectations of higher costs from Trump's tariff policies may have motivated businesses to look away from the U.S., economists note that the numbers show these higher costs from tariffs haven't yet fully materialized. 'Ninety-one per cent of Canadian exports to the U.S. crossed the border duty-free, consistent with the view that the exemption for CUSMA/USMCA-compliant trade from blanket U.S. tariffs imposed in March is working effectively,' economist Nathan Janzen at Royal Bank of Canada says. Story continues below advertisement 'We continue to expect that current rules, if maintained as currently in place, would leave Canada with the lowest tariff rate of any major U.S. trade partner — putting Canadian exporters in a stronger relative position to compete for U.S. import market share than other countries.' Tariff measures are more costly for goods and services that do not meet the requirements of the Canada United States Mexico Agreement (CUSMA/USMCA). Prime Minister Mark Carney has been working with Trump on the terms for a new trade deal. This data from Statistics Canada comes just weeks ahead of the July 21 deadline for Canada and the U.S. to reach a new trade deal, or there could be further tariff escalations.
