US, Canada Hold Last-Minute Talks to Avert 50% Tariffs on $20 Billion in Goods
SCMP · 2 SOURCESabout 1 hour ago2 MIN
Summary
The United States and Canada are locked in last-minute trade negotiations as a midnight deadline approaches for 50% tariffs on Canadian goods worth approximately $20 billion. Canadian Prime Minister Mark Carney held urgent talks with US President Donald Trump by phone on Monday in an effort to avert the steep duties, which the White House claims are justified due to alleged "discriminatory treatment" by Canada against US alcohol, car and dairy products .
Key Points
- The 50% tariffs are scheduled to take effect at 12:01 a.m. Wednesday, covering products such as wine, hockey sticks, cement and tongue depressors .
- Oxford Economics estimates the tariffs target approximately 5.5% of Canada's exports to the US, worth about US$20 billion .
- Prime Minister Mark Carney spoke by phone with President Trump on Monday afternoon, with negotiations described as at an "intense and delicate" stage .
- Nearly 72% of Canadian goods exports last year went to the United States, with the 5,525-mile border undefended and $2 billion in goods crossing daily .
- Canada has reportedly offered concessions including pressuring provinces to put US alcohol and wine back on store shelves, though it's unclear if a deal is imminent .
Why It Matters
The tariffs represent an extraordinary departure from the traditionally cooperative US-Canada relationship, with Canadian public opinion turning sharply against the United States amid Trump's inflammatory comments about making Canada America's 51st state . A petition to expel US Ambassador Pete Hoekstra has collected nearly 218,000 signatures, reflecting deep frustration in Canada . The outcome of these negotiations could significantly impact central Canada's manufacturing sector and set the tone for broader USMCA trade agreement renewals .
The tariffs represent an extraordinary departure from the traditionally cooperative US-Canada relationship, with Canadian public opinion turning sharply against the United States amid Trump's inflammatory comments about making Canada America's 51st state . A petition to expel US Ambassador Pete Hoekstra has collected nearly 218,000 signatures, reflecting deep frustration in Canada . The outcome of these negotiations could significantly impact central Canada's manufacturing sector and set the tone for broader USMCA trade agreement renewals .