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Canada left in a ‘vulnerable position' after U.S. and EU reach trade deal

Canada left in a ‘vulnerable position' after U.S. and EU reach trade deal

CTV News28-07-2025
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Former foreign affairs minister Peter MacKay says Canada 'is on the outside looking in' as the deadline for an agreement with the U.S. looms.
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‘He's not waiting until 2026': Trump likely to reopen CUSMA trade pact in the fall, Doug Ford warns
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‘He's not waiting until 2026': Trump likely to reopen CUSMA trade pact in the fall, Doug Ford warns

Article content OTTAWA — Ontario Premier Doug Ford is warning that U.S. President Donald Trump could choose to suddenly 'pull the carpet out from underneath us' by opening up the trade agreement his administration negotiated with Canada during his first term. Article content He said Ottawa needs to prepare for that to happen this fall. Article content Article content Ford made the comments after the country's premiers and Prime Minister Mark Carney met in private for the first time since Trump escalated his trade war by hitting Canada with a baseline 35 per cent tariff last week. Article content Article content The new tariff, which took effect on Friday after the two countries failed to hit an Aug. 1 deadline to secure a new trade agreement, applies only to goods not covered by the Canada-United States-Mexico agreement on free trade, better known as CUSMA. Article content Article content 'He's not waiting until 2026. At any given time, President Trump — not that he even follows the rules — he can pull the carpet out from underneath us on CUSMA tomorrow with one signature,' Ford told reporters at Queen's Park in Toronto Wednesday afternoon as he called for swift action to bolster the economy. Article content 'So let's be prepared. I think it'll be coming in November. He's going to come at us with double barrels, so we better be ready and throw everything and the kitchen sink at this.' Article content Ontario is at odds with Saskatchewan over Canada's response to the escalating trade war. Ford has called for immediate retaliation, while Saskatchewan Premier Scott Moe is urging Ottawa to dial down its retaliatory tariffs. Article content Article content 'Maybe it's time for Canada even to at least not add additional counter-tariffs in this space, but to even consider removing some of the counter-tariffs that are harmful to Canadian businesses and Saskatchewan businesses today,' Moe said during a radio interview earlier Wednesday, adding the country is currently largely 'protected' under the CUSMA trade pact. Article content Article content Ahead of the meeting with Carney, Ford said he's frustrated by the impacts of high U.S. tariffs on his province's economy and called again for retaliatory tariffs. Article content 'You can't have tariffs on one side and not the other. I still stand by what I say — dollar for dollar, tariff for tariff. They understand strength, not weakness, and we should never, ever roll over and be weak,' Ford told reporters at a news conference Wednesday in Thornhill, Ont. Article content Ford said he told Carney and the premiers that if Ottawa chooses not to hike tariffs in its response, the threshold at which steel products become subject to tariffs should be lowered.

Trump to impose a 100% tariff on computer chips, likely raising cost of electronics
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Globe and Mail

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Trump to impose a 100% tariff on computer chips, likely raising cost of electronics

U.S. President Donald Trump said Wednesday that he will impose a 100-per-cent tariff on computer chips, likely raising the cost of electronics, autos, household appliances and other goods deemed essential for the digital age. 'We'll be putting a tariff of approximately 100 per cent on chips and semiconductors,' Trump said in the Oval Office while meeting with Apple CEO Tim Cook. 'But if you're building in the United States of America, there's no charge.' The Republican president said companies that make computer chips in the U.S. would be spared the import tax. During the COVID-19 pandemic, a shortage of computer chips increased the price of autos and contributed to an overall uptick in inflation. Inquiries sent to chip makers Nvidia and Intel were not immediately answered. Demand for computer chips has been climbing worldwide, with sales increasing 19.6 per cent in the year-ended in June, according to the World Semiconductor Trade Statistics organization. Trump's tariff threats mark a significant break from existing plans to revive computer chip production in the United States. He is choosing an approach that favors the proverbial stick over carrots in order to incentivize more production. Essentially, the president is betting that higher chip costs would force most companies to open factories domestically, despite the risk that tariffs could squeeze corporate profits and push up prices for mobile phones, TVs and refrigerators. By contrast, the bipartisan CHIPS and Science Act signed into law in 2022 by then-President Joe Biden provided more than US$50-billion to support new computer chip plants, fund research and train workers for the industry. The mix of funding support, tax credits and other financial incentives were meant to draw in private investment, a strategy that Trump has vocally opposed.

Trump says he plans to put a 100% tariff on computer chips, likely increasing cost of electronics
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CTV News

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  • CTV News

Trump says he plans to put a 100% tariff on computer chips, likely increasing cost of electronics

WASHINGTON — U.S. President Donald Trump said Wednesday that he will impose a 100 per cent tariff on computer chips, likely raising the cost of electronics, autos, household appliances and other goods deemed essential for the digital age. 'We'll be putting a tariff on of approximately 100 per cent on chips and semiconductors,' Trump said in the Oval Office while meeting with Apple CEO Tim Cook. 'But if you're building in the United States of America, there's no charge.' The Republican president said companies that make computer chips in the U.S. would be spared the import tax. During the COVID-19 pandemic, a shortage of computer chips increased the price of autos and contributed to an overall uptick in inflation. Demand for computer chips has been climbing worldwide, with sales increasing 19.6 per cent in the year-ended in June, according to the World Semiconductor Trade Statistics organization. Trump's tariff threats mark a significant break from existing plans to revive computer chip production in the United States. He is choosing an approach that favours the proverbial stick over carrots in order to incentivize more production. Essentially, the president is betting that higher chip costs would force most companies to open factories domestically, despite the risk that tariffs could squeeze corporate profits and push up prices for mobile phones, TVs and refrigerators. By contrast, the bipartisan CHIPS and Science Act signed into law in 2022 by then-President Joe Biden provided more than US$50 billion to support new computer chip plants, fund research and train workers for the industry. The mix of funding support, tax credits and other financial incentives were meant to draw in private investment, a strategy that Trump has vocally opposed. Josh Boak, The Associated Press

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