All articles tagged with #us canada trade
Canada’s central bank is seen holding the policy rate at 2.25% in a cautious stance as Q2 growth strengthens to 0.8% and inflation hits 3% in July, but escalating U.S.-Canada tariffs add uncertainty that could weigh on growth. Analysts say the BoC will assess the economy and inflation before any moves, with markets still pricing a path of rate hikes over the next year.
Canada’s ruling Liberals swept three special elections (Chicoutimi–Le Fjord in Quebec, Beaches–East York in Toronto, and North Vancouver–Capilano in BC), boosting Prime Minister Mark Carney and lifting the party to 173 of 343 seats. The dramatic Quebec upset, along with wins in fellow Liberal-held ridings, is framed as broad endorsement of Carney’s policy approach amid stalled US-Canada trade talks and tariffs. Analysts say the results consolidate Carney’s cross‑regional support and pose challenges for the Conservatives under Pierre Poilievre, while emphasizing the Liberal push to diversify Canada’s economic ties beyond the US.
The US–Canada tariff fight has intensified, with the US's latest 50% levy on about C$28bn of Canadian goods prompting Canada’s dollar-for-dollar retaliation. Ontario is hardest hit in Canada, with auto and steel jobs at risk; Quebec’s metal sector also declined. In the US, swing states such as Ohio, Illinois and Pennsylvania face tariff exposure. The average US tariff on Canada has jumped to about 5.7%. Canada is pushing to diversify exports beyond the US and attract investment, while both economies could face job losses and higher prices if the dispute persists.
A renewed US-Canada tariff battle expands to cars, wood, household goods and alcohol, with Canada replying with duties on US metals and various items. A potential 50% US tariff on Canadian autos could lift prices and squeeze supply chains, while higher lumber and wood-product costs threaten home-building expenses. Some goods may shift to domestic suppliers, tempering price spikes, and alcohol restrictions have reduced US exports to Canada. Economists warn the broader tariff climate adds uncertainty, risks investment, and could complicate the USMCA framework, though the direct household cost from this episode is expected to be modest in isolation (a few dollars per household, rising when considering the wider tariff stance).
US President Donald Trump signed an executive order to rename Lake Ontario to Lake America amid a US-Canada trade dispute and new tariffs. Canada rejected the change, saying it will continue to call the lake Lake Ontario, while the order directs updating US geographic records. The move echoes a previous, disputed renaming and underscores ongoing tensions over trade and sovereignty.
The US and Canada, long-time allies, have escalated their trade dispute after talks collapsed and Trump invoked Section 338 of Smoot-Hawley to impose 50% tariffs on about $20 billion in Canadian exports, provoking a retaliatory Canadian tariff plan on US goods. The move threatens higher prices for consumers, risks broader cost pressures for border-state industries like autos and seafood, and could sway swing-state voters in the upcoming midterms. Economists warn that reviving Depression-era protectionism undermines decades of global trade liberalization, with the ultimate outcome likely shaped by political changes after the elections.
Canada has rolled back planned 25% tariffs on U.S. seafood, removing seafood and fish sector products from its tariff list after industry concerns about vulnerability. Ottawa says it will offer relief to tariff-exposed sectors through remission payments and enhanced income support for affected workers, highlighting a cross-border seafood trade worth more than $5 billion and Maine lobster often processed in Canada. Officials pledged further stakeholder consultation as U.S. tariff tensions and the possibility of counter-tariffs remain a backdrop.
With President Trump promising up to 50% tariffs on autos and auto parts from Canada if a deal isn’t reached by Jan. 1, automakers are lobbying cautiously to avoid destabilizing a highly integrated North American supply chain. Industry officials stress the need to protect cross-border manufacturing while pressuring for a favorable resolution, as talks stall and the U.S. and Canada navigate renegotiations underUSMCA framework. The dispute also draws comments from unions like the UAW, which opposes tariff escalation.
The Morning Shift reports that President Trump's plan to impose 50% tariffs on Canadian auto imports could devastate the North American auto industry, risking jobs and profits on both sides as Canada signals it will only return to talks with the 'right attitude' and industry groups warn that tariffs could halt U.S. assembly without Canadian parts; past tariffs cut Canadian vehicle output and experts caution about the broader economic fallout, while the edition also covers Volkswagen's labor unrest over a major restructuring and Porsche's AI deal with Tata Consultancy Services.
The weekend breakdown in US-Canada talks led Washington to impose a 50% tariff on a wide range of Canadian goods, but crude oil is exempted, underscoring how tightly the two economies are tied: Canada supplied about 63% of US crude last year and the US buys roughly 90% of Canadian exports. Imposing tariffs on energy would raise costs for US refiners and could force price changes, while Canada would struggle to find alternative buyers beyond the US, given existing pipelines and connections. The oil relationship is powerful but risky to weaponize, making crude a costly lever in the dispute for both sides.
Despite the United States’ economic heft, broad political support for a Canada-wide tariff fight is weak ahead of the midterms, while Canada remains united in backing retaliatory measures. Ottawa has imposed or signaled dollar-for-dollar duties to deter U.S. tariffs, banking on leverage from deep trade ties. The path to a deal looks uncertain as both sides fear concessions, with potential ripple effects on the North American auto sector and prices. The outcome will depend on political endurance more than raw economic strength.
President Trump said the U.S. will raise tariffs on imports of cars, trucks and auto parts from Canada to 50% on Jan. 1, 2027, doubling the current 25% duties after talks collapsed. The move follows 50% tariffs already imposed on about $20 billion of Canadian goods and comes as Canada’s auto market remains small relative to the U.S., adding uncertainty for automakers and cross-border supply chains amid a stalled agreement.
U.S. Trade Representative Jamieson Greer said Canada caused the collapse of tariff negotiations, claiming Ottawa changed its demands at the last moment as Washington prepared 50% tariffs on about $20 billion in goods (including wine, hockey sticks and cement); Canadian PM Carney echoed criticism of last-minute U.S. changes. The tariffs took effect, and Canada signaled dollar-for-dollar retaliation. This is breaking news.
US tariffs on Canadian goods threaten to wipe out a large share of cross-border sales for small firms, with makers like a Calgary jeweller facing 50% price hikes to stay afloat and others worried their businesses will fail as supply chains and pricing tighten amid a prolonged US–Canada trade dispute.
Former Vice President Mike Pence warned on CNN that the U.S.–Canada tariff dispute could hurt the economy and consumer affordability, urging negotiation rather than confrontation as tariffs on Canadian goods took effect after talks collapsed, with Canadian Prime Minister Mark Carney vowing to match the measures dollar for dollar.