Canada has been quietly praised for refusing to fold under pressure from US President Donald Trump in the long-running fight over trade tariffs. The latest talks between the North American neighbors collapsed on August 21. Until the 11th hour, both sides were talking as if a deal was within reach.
The United States then put 50% tariffs on about $20 billion (€17.2 billion) worth of Canadian goods, while Ottawa pledged to match those duties on US imports. Until the talks folded, Canada's approach was to cut a deal that would reduce the tariffs and keep cross-border supply chains functioning, particularly in the automotive and steel sectors. US negotiators were, however, accused of changing the terms at the last minute, which the Canadian side said would have forced them to match US tariffs on China.
According to Ottawa, Washington wanted a say on future trade deals with other nations and to prevent Chinese goods being routed through Canada to evade US duties. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video Dan Ciuriak, a senior fellow at the Canada-based Center for International Governance Innovation, described Trump's tariff-matching plan as "fortress North America," which he said was now a sovereignty issue for Ottawa. "Canada is a trading nation," Ciuriak told DW.
"If we align perfectly with the Americans — primarily about China — we then end up sacrificing our trade policy." There is a recent precedent. When the US imposed 100% tariffs on Chinese electric vehicles last year, Canada followed suit. Beijing retaliated with 100% tariffs against one of Canada's biggest exports — canola.
Canada's $4.9 billion exports of canola oil, meal and seed to China were cut in half last year, according to data from the Canada-China Business Council. "The smaller country is the one that bears the brunt in this kind of game. So that’s one very good reason for Canada to have an independent trade policy," said Ciuriak.
As the US-Canada talks collapsed, Ottawa also complained that Washington had sought relief from rules on French-language movies and shows. Canada said this amounted to interference in its language and culture. Despite the uncertainty and higher cost to business from walking away, Canadian Prime Minister Mark Carney's approach to negotiations with the US has broad public support.
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