US tariffs on Canada loom

The United States, under President Donald Trump, has imposed steep 50% tariffs on Canadian goods, citing 'discriminatory treatment' by Canada against US alcohol, automobile, and dairy products. The tariffs, set to take effect at midnight, cover products such as wine, hockey sticks, and cement, targeting approximately 5.5% of Canada's exports to the US, worth about US$20 billion. Canadian Prime Minister Mark Carney held urgent talks with Trump on Monday and Tuesday in an effort to avert the duties, with negotiations going down to the wire. A potential deal to sidestep the tariffs awaits Trump's approval, according to Politico. Canadian negotiators have been in Washington seeking relief not only from these new tariffs but also from existing sector-specific duties on auto, steel, lumber, and aluminum. Ottawa has reportedly offered concessions, such as pressuring provinces to restore US alcohol and wine to shelves. The tariffs are part of broader tensions over the renewal of the United States–Mexico–Canada Agreement, with Trump's trade envoy Jamieson Greer stating the tariffs aim to 'hold Canada accountable' for its retaliation. Oxford Economics assesses the tariffs pose a 'modest' negative risk to Canada's economy but would more severely affect central Canada's manufacturing sector. The US Supreme Court's earlier striking down of many global tariffs led Trump to use an untested legal provision for these duties.