U.S. President Donald Trump has delayed his new 50 per cent tariffs on Canadian goods after he said the two countries reached a tentative deal and that the Keystone XL pipeline “may be awoken from the grave.”
Trump’s 50 per cent tariffs have been delayed by three days.
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PM Carney asks premiers to return U.S. booze to shelves: Houston
Following a virtual first ministers meeting, Nova Scotia Premier Tim Houston said Prime Minister Mark Carney asked the provincial leaders “to return the U.S. alcohol to the shelf.”
In a virtual media conference on Wednesday, Houston said the ask is “something that came directly out of the negotiating table,” and is “something that (he) would be willing to do for the prime minister at this point in time.”
“Whether Nova Scotians or whether Canadians will actually buy it when it gets back on the shelves, that’s a whole other discussion,” he added.
Kayla Thompson, CTVNews.ca journalist
Provincial sources say trade deal not done yet
Multiple provincial sources are sharing cautious optimism with CTV News following a briefing with Carney on the tentative trade deal between Canada and the U.S. However, they also emphasized that the deal is not done yet.
In a post to Truth Social late Tuesday, Trump said the countries “have a deal,” but sources say that characterization is not accurate and further negotiations are ongoing.
The provincial sources also tell CTV News that Carney personally asked the premiers to return U.S. alcohol to store shelves. He even told them he will bear any public pushback if that happens.
According to a recent Nanos Research survey, most Canadians say they won’t purchase U.S. booze if its returns to stores.
As for the tariff reduction coming to Canada, the sources say half of the impact will be felt in Ontario, with the other half affecting the rest of Canada.
One source indicated that this is enough to get Ontario Premier Doug Ford on board.
Stephanie Ha, bureau manager, Ottawa News Bureau
With files from CTV News’ chief political correspondent Vassy Kapelos
Potential deal good for Saskatchewan: Moe
Saskatchewan Premier Scott Moe told reporters Wednesday that the tentative trade deal between Canada and the U.S. is good for both countries, as well as the province.
“We need to have, in many ways, preferred market access to our largest trading partner,” Moe said. “I feel that is what we’re in the process of achieving.”
While these tariffs have only affected roughly five per cent of the Saskatchewan economy, Moe said the status quo was not possible and negotiators had to find the best path forward with the country’s largest trading partner.
He said the deal means Canada will have the best trade agreement of any country in the world with the United States.
U.S. booze could return if deal reached: N.W.T. premier
Northwest Territories Premier R.J. Simpson says the territory is prepared to put U.S. alcohol back on the shelves once Canada and the United States finalize a new trade deal.
He added that Canadians would welcome a return to the close relationship the two countries once had, but recognizes the current circumstances are different.
“I think that we need to accept the reality that those days are gone, and it’s a different trading environment now going forward, with President Trump in the White House,” he said.
Simpson said he isn’t convinced a change in the White House or a different political party would necessarily restore the previous relationship.
“What we need to do is make sure that we can get the best deal that we can get,” he said.
Tammy Ibrahimpoor, CTVNews.ca journalist
Meeting between cabinet, first ministers ‘constructive’: LeBlanc
Canada-U.S. Trade Minister Dominic LeBlanc said the meeting between cabinet and the nation’s premiers was a “constructive and, frankly, very important conversation.”
“The prime minister updated the premiers on where we were in terms of our discussions with the United States,” LeBlanc told reporters Wednesday.
“We have more work to do,” he added before leaving the scrum.
Kayla Thompson, CTVNews.ca journalist
Sectoral tariffs reduced: sources
Multiple sources tell CTV News there are reductions in sectoral tariffs, such as steel and aluminum, as part of the agreement with the United States, but none of the sources knew the scope of those reductions.
As for how the public will respond, sources also tell CTV News the details of those sectorial tariffs will “make or break the deal” politically for Prime Minister Mark Carney.
CTV News Ottawa Bureau
‘Probably have a deal with Canada’: Trump
Speaking to reporters in Washington on Wednesday Trump said the U.S. “probably” has “a deal with Canada.”
“We delayed it for three days, because I think we have a deal with the prime minister and a good deal for everybody,” he said.
Kayla Thompson, CTVNews.ca journalist
U.S. pays ‘brunt’ of aluminum tariffs: executive
Canada’s aluminum sector is under “major” tariff pressure, but the United States is “paying the brunt of those,” said Aluminium Association of Canada’s president and CEO Jean Simard.
“Right now, the U.S. is paying much more per ton of aluminum than Europe, because basically, they need the metal,” Simard said in an interview with CTV News Channel on Wednesday.
By the fall of 2025, exports of unwrought aluminum and aluminum alloys were down 26 per cent from levels reported the previous November, according to Statistics Canada.
Simard says once the Middle East conflict between the U.S. and Iran began, the American inventory shrank from six weeks to one, meaning Canada could raise the price of aluminum for a U.S. market desperate for product.
“That tension between supply and demand just kept the price going higher,” he said.
Aarjavee Raaj, CTVNews.ca journalist
‘Finish the damn thing’: Former Alberta premier on Keystone pipeline
A former Alberta premier says he’s encouraged by renewed discussions about the Keystone XL Pipeline.
Jason Kenney told CTV News Wednesday it’s time to “just get ‘er done” and expand the project.
“The U.S. does need a reliable secure source of energy, and (this) could be that,” he said. “With this project, we would be.”
The long-abandoned pipeline project starts in Hardisty, Alta., a town northeast of Red Deer.
It would carry Canadian crude to the Gulf Coast.
The expansion was originally proposed in 2008 but was shot down twice by Democrat administrations.
Experts estimate the expansion could increase Canadian crude exports to the U.S. by more than 12 per cent.
“One of the best ways to deal with Trump’s aggression against the Canadian economy is to give him a win, which is also a win for Canada,” Kenney said.
“That would be a big pipeline going south.”
Timm Bruch, CTV News Calgary journalist
Premier Smith talks pipelines
Alberta Premier Danielle Smith chimed in on Canada’s tentative deal with Trump, which appears to involve the Keystone XL pipeline.
“Alberta wants to build new pipelines west, east, north and south and we are always in discussions with industry to support these opportunities,” she said in a statement on Wednesday.
Smith also urged the federal government to restore free and fair trade with the U.S. “while also diversifying and strengthening the Canadian economy.”
Kayla Thompson, CTVNews.ca journalist
Carney to convene cabinet, premiers
Carney will chair a cabinet meeting in Ottawa at 3 p.m. ET, followed by a meeting with premiers at 4:30 p.m. News media have been excluded from both.
CTV News heard earlier from Canada-U.S. Trade Minister Dominic LeBlanc’s office that he will meet Carney in Ottawa.
Luca Caruso-Moro, CTVNews.ca journalist
LeBlanc breezes past press
Canada-U.S. Trade Minister Dominic LeBlanc is back on Parliament Hill following a trip home from Washington. He was met by a group of reporters but did not speak to them, beyond saying hello and remarking it’s “less humid” in Ottawa.
Luca Caruso-Moro, CTVNews.ca journalist
Details of potential deal key to ending booze ban: O’Toole
Ahead of a highly anticipated meeting between the prime minister and premiers, former federal Conservative leader Erin O’Toole says the details of a potential deal with the United States will be key in determining whether provinces are prepared to lift bans on American booze.
“The alcohol on shelves is not a Canadian tariff. That’s a decision by the provinces,” O’Toole, who also serves on the Advisory Committee on Canada-U.S. Economic Relations, told CTV News Channel on Wednesday.
“It’s going to come down to the premiers working with the prime minister to say, ‘yeah, we think this deal is good enough for certain sectors and some of our workers, that we will stop this symbolic act of boycotting the U.S. alcohol.’”
Multiple sources tell CTV News there are reductions in sectoral tariffs on the table as part of the agreement with the U.S., including steel and aluminum. However, O’Toole notes it doesn’t seem like there is much talk about any movement on softwood lumber.
“So, I hope that provinces like B.C. and Ontario, will be able to work with the federal government on a made-in-Canada solution.”
Samantha Pope, CTV’s Power Play with Vassy Kapelos Senior Producer
Trump says ‘no tariffs going into Canada’
“We have no tariffs going into Canada anymore,” Trump said on Wednesday. “Canada was charging us tremendous tariffs.”
Asked if the U.S. plans to drop any of the tariffs it charges on Canadian autos, Trump said “we’re reducing it a little bit.”
Luca Caruso-Moro, CTVNews.ca journalist
Trump: New deal is ‘great’ for U.S. farmers
Trump says the new agreement with Canada is “great for our farmers” and a “very good deal for both parties.”
He made the remark to reporters in Washington.
Luca Caruso-Moro, CTVNews.ca journalist
U.S. Ambassador says he welcomes ‘significant progress’
U.S. Ambassador to Canada Pete Hoekstra says he is welcoming the “significant progress” made between Canada and the United States towards a new trade agreement.
Hoekstra released a statement on Wednesday afternoon crediting U.S. President Donald Trump for his “leadership and determination” for driving the negotiations.
He also said he appreciates “the efforts of our Canadian partners in making this possible.”
Hoekstra’s latest comments strike a more conciliatory tone towards Canada than previous months, in which he publicly criticized the provincial ban on U.S. alcohol and welcomed the possibility of Canada becoming the 51st state.
There is currently a Canadian petition calling for his expulsion that has garnered nearly 240,000 signatures.
Stephanie Ha, Bureau Manager, Ottawa News Bureau
LeBlanc: Supply management intact
Canada-U.S. Trade Minister Dominic LeBlanc says he’s confident that supply management will remain intact.
Canada has implemented a wide range of economic mechanisms to protect its domestic agricultural industry. Those tools include import and production quotas and set pricing. The Americans have raised what it calls “irritants” within that system, and Quebec Premier Christine Frechette called it a “red line” not to be crossed earlier today.
“The prime minister was very clear. We needed to protect supply management. We needed to ensure that the supply management regime remained entirely intact and I’m confident that that’s the case,” LeBlanc said, before abruptly leaving a scrum in Washington.
Luca Caruso-Moro, CTVNews.ca journalist
Keystone XL is ‘encouraging’: Former premier
Jean Charest, a former Quebec premier and current member of the prime minister’s Advisory Committee on Canada-U.S. Economic Relations, says it’s “encouraging” that Trump is hinting at the revival of the defunct cross-border Keystone XL pipeline project.
“Whether it’s Keystone or something else on energy, if we’re able to enlarge the conversation beyond tariffs, we’re in a much better position to defend our interests,” Charest told CTV News Channel on Wednesday.
He adds that this also “says a lot” about how Canada-U.S. relations have evolved.
“Canada, from the beginning has argued that our relationship with the United States is about defence. It’s about the border. It’s about immigration. It’s about the Arctic (and) strategic minerals,” Charest said.
“If that’s the case, we’re going to have a much better conversation in which we’re able to defend our interests. So the simple fact that the president raises Keystone XL as being a new possibility is interesting.”
Samantha Pope, CTV’s Power Play with Vassy Kapelos Senior Producer
‘Did not see this coming’: Ham on Keystone XL
When it comes to reviving the Keystone XL pipeline, Trump has brought up an issue that many people “did not see coming,” according to CTV News political analyst Eric Ham.
Ham called it a “clearly polarizing issue,” noting that it was rejected under the Obama administration and brought back during Trump’s earlier term in 2016, before being rejected again by former U.S. president Joe Biden.
Now Trump says it is now back on the table.
“I think the question, given that we know how intractable these issues are: Can they actually get this negotiation done in 72 hours?” Ham asked.
According to the political analyst, it seems “quite insurmountable” that this can be ironed out within three days.
Aarjavee Raaj, CTVNews.ca journalist
No more concessions: NDP’s Lewis to PM Carney
NDP Leader Avi Lewis is urging Prime Minister Mark Carney not to grant “any concessions that would further undermine our economic independence” during trade negotiations with the U.S.
“We are dealing with a president who trades in chaos and unpredictability: there is no deal that will bring an end to the threats and uncertainty,” Lewis said in a social media post Wednesday.
For this reason, the NDP leader said it’s essential to protect Canadian workers “without granting further unilateral concessions.”
He added that the Keystone XL pipeline that Trump said the tentative deal could revive is “a concession that makes no sense whatsoever - for our economy, our sovereignty, or the climate.”
“No deal is better than a bad deal,” Lewis wrote to Carney.
Kayla Thompson, CTVNews.ca journalist
Keystone XL pipeline is ‘encouraging’: Former Quebec premier
Jean Charest, a former Quebec premier and current member of the prime minister’s Advisory Committee on Canada-U.S. Economic Relations, says it’s “encouraging” that Trump is hinting at the revival of the defunct cross-border Keystone XL pipeline project.
“Whether it’s Keystone or something else on energy, if we’re able to enlarge the conversation beyond tariffs, we’re in a much better position to defend our interests,” Charest told CTV News Channel on Wednesday.
He adds that this also “says a lot” about how Canada-U.S. relations have evolved.
“Canada, from the beginning has argued that our relationship with the United States is about defence. It’s about the border. It’s about immigration. It’s about the Arctic (and) strategic minerals,” Charest says.
“If that’s the case, we’re going to have a much better conversation in which we’re able to defend our interests. So the simple fact that the president raises Keystone XL as being a new possibility is interesting.”
Samantha Pope, CTV’s Power Play with Vassy Kapelos Senior Producer
The ‘Canadian advantage’
Carney congratulated Canadian and U.S. negotiators for “significant progress” on trade.
The agreement, which has not been released, “reinforces” the “Canadian advantage,” Carney wrote on X.
LeBlanc coming home
Canada-U.S. Trade Minister Dominic LeBlanc is heading back from Washington to Ottawa.
“Minister LeBlanc is heading back to Ottawa to meet with the prime minister and take other meetings necessary to finalise trade negotiations,” reads a statement from the minister’s office.
Luca Caruso-Moro, CTVNews.ca journalist
Keystone XL could be ‘sticking point’ for Trump
Bringing back the cross-border oil pipeline did not appear to be part of the pending trade deal, but it could become a “sticking point,” according to CTV News political analyst Eric Ham.
He told CTV News Channel on Wednesday that the situation seems “mysterious,” but noted Trump has prioritized “oil and energy” as a key component in his administration and in negotiations with Canada and other countries.
“We saw how the president was willing to invade, frankly, Venezuela over energy,” Ham said. “So this has always been a priority.”
Devika Desai, CTVNews.ca journalist
Keystone XL is already ‘revived’
The Keystone XL project has already been revived, a Canadian policy analyst said, despite Trump stating intentions to revive it in a trade announcement this week.
The proposal had always been “approved on the Canadian side,” Heather Exner-Piros, director of energy, natural resources, and environment at the Macdonald-Laurier Institute, an Ottawa think tank.
She added that South Bow, which now owns the project, has already entered into an agreement with American company Bridger to revive it.
Producers have already contracted out a portion of the pipeline and are planning a final investment decision in 2027.
“No one is disappointed that Donald Trump is latching himself on to this, but it wasn’t really a part of the negotiations,” she said.
The project already had commercial backing and private financing, she added, with the intention of “expanding production generally.”
Trump “has this idea of energy dominance,” she said.
“Having those Canadian sources of oil coming in, bolstering supply ... is important for the United States. And if Donald Trump wants to take credit for it, I say go ahead.”
Devika Desai, CTVNews.ca journalist
‘Probably no good options’: Toronto board of trade head
The president and CEO of the Toronto Region Board of Trade says that while he’s “cautiously optimistic” about Canada potentially reaching a deal with the U.S., he understands significant concessions were likely made as a result.
“There are probably no good options in this negotiation,” Giles Gherson told CP24 Wednesday afternoon.
As consumers and businesses on both sides of the border anxiously await the details of a possible agreement, Gherson said seeing auto tariffs dropped would be a strong start.
“We would like to see them eliminated. We’ve had free trade in automotive since 1965 between Canada and the United States, and then all of a sudden we’ve been hit with these with these significant tariffs, which have really done significant damage to our sector.”
Gherson went on to explain that any deal reached by Canada and the U.S. would essentially act as a “ceasefire” in Trump’s trade war, but pointed out that any pause in the trade dispute would be temporary until CUSMA renegotiations open next year.
“And the question is: how much do we have to pay for the ceasefire?”
Phil Tsekouras, CTVNews.ca journalist
‘Merged into one piece’
Former Conservative deputy leader Lisa Raitt says the brief reporter scrum with Canada-U.S. Trade Minister Dominic LeBlanc and U.S. Trade Representative Jamieson Greer has raised some questions: Was LeBlanc nodding while Greer spoke because he understood what his counterpart was saying, or because he was in agreement?
“It’s interesting that one side, the U.S. is saying that it is a win, and the Canadian side is saying it’s an extension to negotiate for three more days,” she told CTV News Channel. “Is this an extension so that the minister and the prime minister can speak to the premiers and speak to the industry sector heads that are going to be impacted by whatever deal has been struck at the table?”
Raitt, who is also a member of Prime Minister Mark Carney’s Advisory Committee on Canada-U.S. Economic Relations, adds that the council has been told there will be an opportunity to address other issues with the U.S., like digital strategy, oil provisions and critical minerals, once trade has been stabilized and the tariffs are negotiated away.
“I thought those things were going to be the second step, and it looks like everything has been merged into one piece,” she says. “We’ll have to see where we ended up in the whole spectrum.”
Samantha Pope, CTV’s Power Play with Vassy Kapelos Senior Producer
Greer: A North American ‘powerhouse’
U.S. Trade Representative Jamieson Greer, speaking to reporters following a brief meeting with Canadian negotiators, said his team is “very happy with where we ended up.”
He said the agreement, the details for which have not been released, will “really strengthen the North American economy” as an energy and manufacturing “powerhouse.”
Luca Caruso-Moro, CTVNews.ca journalist
American distillers ‘hopeful’ for return to Canadian shelves
The U.S. spirits industry is keeping a close eye on this potential trade deal and hoping for a quick return to Canadian liquor stores.
“The United States exports about US$220-million worth of American spirits to Canada, and that’s all but been shattered,” Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, told CTV News Channel.
All but two Canadian provinces and territories have banned the sale of U.S. alcoholic products from government liquor stores in retaliation to U.S. trade action against Canada. U.S. products remain available in Saskatchewan and Alberta.
Swonger says he’s hopeful provincial premiers will support the prime minister in getting a deal done and returning American alcohol to the shelves.
“Let the brands work hard to try to earn Canadian consumers back,” Swonger said.
Tiffany Hendsbee, CTVNews.ca Supervising Multiplatform Writer
Canadian reps remain quiet: Conservative analyst
Canadian trade representatives are sharing little information on the trade negotiations, a Conservative analyst says.
Kate Harrison told CTV News Channel on Wednesday that Canadians are receiving more updates from the U.S. on the pending deal and what’s being discussed.
This belies previous campaign promises made by Carney to secure a trade deal that was better than the one before, she said.
“It doesn’t instill much confidence,” she added.
“We have a stay of execution for 72 hours. I think a lot of Canadians are going to be asking, ‘What have we given up to get even that momentary reprieve?’”
Canada, for example, has not stated whether Keystone XL, a cross-border oil pipeline will be revived as part of the deal, nor have there been comments on whether alcohol is back on the table.
Devika Desai, CTVNews.ca journalist
Conservatives’ plan for U.S. trade deal
Canada can offer U.S. a national strategic mineral and oil reserve as a lever in the pending trade deal, Conservative Leader Pierre Poilievre said on Wednesday.
Poilievre told reporters in Charlottetown, P.E.I. that Canada can offer a “tailor-made reserve” of strategic resources to offer to countries with tariff-free trade.
Canada has 10 of the 12 NATO-defined strategic minerals needed to fight a war, he said and is the fourth-biggest supplier of oil.
“The Americans need all of those things,” he said.
He also outlined a “tariff-free auto pact” wherein for every car manufactured in Canada, the same producer can get a car to sell duty free from a partner in CUSMA.
He advocated for six-month approval times for major projects, with one project undergoing one review.
“We should bundle all of this up in a Canadian Sovereignty Act, and we should use the aforementioned leverage to get the deal that we want,“ he said.
”We always have to put our country first, and Conservatives are fighting for Canada.”
Devika Desai, CTVNews.ca journalist
Poilievre says he hasn’t heard from Carney
Conservative Leader Pierre Poilievre says he has not heard from the prime minister on trade negotiations since the tariff threats were first announced.
“Mr. Carney has refused to have any help from anybody,” Poilievre told reporters on Wednesday in Charlottetown, P.E.I.
However, Poilievre said he is willing to put differences aside to obtain a deal that will end tariffs in Canada.
“I’ve (offered) numerous times in our phone calls,” he said. “When I went to the (U.S.), I very clearly refused to criticize him on foreign soil. I briefed him on my visit and my meetings ... and our MPs have reached out again and again to the government to offer any help we can.”
He reiterated wanting to see a deal that is, as “promised” by Carney, better than the previous one.
“Before we had basically no tariffs on goods coming to the United States,” he said. “...We still want to make sure that he keeps his word and gets the great deal, the even better deal that he promised Canadians.”
Devika Desai, CTVNews.ca journalist
Read Trump’s statement
Trump posted the following message on his Truth Social platform late Tuesday evening.
“I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL! The great Keystone XL Pipeline, long ago killed by Sleepy Joe Biden, may be awoken from the grave! Thank you for your attention to this matter. President DONALD J. TRUMP.”
He then published an AI-generated image of himself hoisting the Keystone XL out of a gravesite marked by a tombstone labelled “BURIED BY BIDEN.”
Read Carney’s statement
Carney posted this message online on Tuesday.
“Over the last number of weeks, Canada has engaged in intensive discussions with the United States to address outstanding trade issues and deliver greater certainty and real benefits for Canadian businesses, workers, farmers, and families.
“Substantial progress has been made, although there is important work still to be done. As this work is ongoing, the United States has agreed to postpone the implementation of its 50% tariff on a range of Canadian goods under Section 338 of the U.S. Tariff Act of 1930 until end of day, August 21.
“While we continue this work, Canada remains focused on building a stronger, more independent, and more competitive economy at home.”
Quebec’s ‘red line’
Quebec Premier Christine Frechette passed CTV News cameras on her way into the legislature. She said she has not seen all the terms of Canada’s agreement with the U.S. to provide a statement on trade.
But she reiterated her “red line, not to be crossed:” Supply management on dairy and “the protection of culture and language.”
She added, “what businesses need is confidence and stability and stability and predictability.”
Luca Caruso-Moro, CTVNews.ca journalist
‘Shooting themselves in the foot’
For the auto industry, the president of the Automotive Parts Manufacturers’ Association says any negotiated tariff rate must be below the profit margin.
Flavio Volpe told CTV News, “It’s got to be below six per cent, and for 60 years we’ve been working at zero per cent.”
Volpe, a member of the federal government’s group of insider advisers said if automakers are forced to absorb or pass on hundreds of millions of dollars in extra costs to consumers each year, plants in places such as Brampton or Woodstock, Ont., could move to the U.S. or elsewhere where they may be more profitable.
“They [the United States] are just shooting themselves in the foot if they’re going to charge their own companies a penalty to sell to their own customers.”
Ted Ballantyne, CTV News Senior Multiplatform Writer
Trade talks today
Canada-U.S. Trade Minister Dominic LeBlanc and Chief Negotiator Janice Charrette will meet U.S. Trade Representative Jamieson Greer at his office at 11:15 ET.
Greer’s office posted on X last night congratulating Trump and giving some insight on a tentative trade agreement.
“The deal will include comprehensive market access for all American goods, economic security commitments, digital trade alignment, and many important provisions that will continue to protect our market and American workers, along with our Canadian partners,” reads the post.
Luca Caruso-Moro, CTVNews.ca journalist
Why is Trump talking about Keystone XL?
When Trump announced on Tuesday night that he’d be postponing the tariffs for a few days, he hinted at the revival of a long controversial project to expand a cross-border oil pipeline from Canada into the U.S.
First proposed in 2008, the Keystone XL pipeline has seen a rocky journey piled with legal barriers, opposition from environmental and Indigenous activists, and subject to the whims of U.S presidents at different points in time.
Trump had revived the project during his first term but Biden shut it down on his first day as president. The pipeline came up in discussions last year when Carney pitched the pipeline in exchange for relief from U.S. tariffs on Canadian steel and aluminum.
Devika Desai, CTVNews.ca journalist. Read the full story here.
Businesses ‘negotiating for a little bit of stability’
The Trump administration has been successful at conditioning and changing expectations for Canadian businesses, Laura Dawson, executive director of the Future Borders Coalition told BNN Bloomberg.
She believes, at this point, Canada is not trying to negotiate a permanent deal.
“They’re negotiating for a little bit of stability to take them through a short period of time,” says Dawson, who advocates for Canada–U.S. cross-border business relations.
Dawson stresses that businesses represent the microeconomy, and not the macroeconomy. So while CUSMA may affect a fraction of Canada’s GDP, it affects 100 per cent of some businesses.
“So they are not being cavalier. They’re saying, ‘what do we need to do to survive for the next couple of months, and then build strength over the next couple of years?’” says Dawson, adding that businesses are celebrating the three-day reprieve after the U.S. President Donald Trump said he would pause sweeping 50 per cent tariffs on Canadian imports.
“We had all the signs that it could happen. We had serious conversations taking place between the principal government negotiators on both sides. We had serious conversations taking place between governments and the respective business communities on both sides,” says Dawson.
She says what happens next remains uncertain, but it’s clear that the U.S. is trying to reconfigure the shape of global trade because “it feels like it’s got a raw deal.”
“It doesn’t want the kind of access and market power that China has had, and it said to the rest of the world, ‘We’re changing the rules, and you’re either with us or without us.’ And this was a hard lump for Canada to swallow,” says Dawson.
Anam Khan, BNN Bloomberg journalist
13M jobs at risk: U.S. business group
The imposition of higher U.S. tariffs would put 13 million American jobs at risk, according to U.S. Chamber of Commerce’s senior vice president, Neil Herrington.
That’s the number of U.S. jobs that “depend on trade” under the Canada-U.S.-Mexico Agreement (CUSMA), according to Herrington.
“The introduction of higher tariffs would damage both economies, drive up costs for U.S. families,” and “further disrupt critical supply chains,” he wrote in a Tuesday statement.
Luca Caruso-Moro, CTVNews.ca journalist
Relief in ‘limbo state’
Candace Laing, president and CEO of the Canadian Chamber of Commerce, said in a statement Tuesday that the tariff delay provides some relief on both sides of the border.
She said an extension doesn’t bring the certainty of a signed interim deal.
“This limbo state is not anyone’s preferred outcome — time is of the essence,” Laing said.
“We commend the negotiating team for their work and sense of urgency this week, and call on them to keep it up: ultimately, a resilient and integrated North American economy would be a stronger one for all.”
The Canadian Press
