Donald Trump and Mark Carney headed for talks soon as US' 35% tariff shocks Canada
LeBlanc expressed optimism that a deal could be reached to reverse or lower the 35% US tariff on Canadian goods not covered under the US-Mexico-Canada trade agreement (USMCA), speaking on CBS News.
'I believe there is an option of striking a deal that will bring down tariffs,' LeBlanc stated, just days after President Donald Trump signed an executive order sharply increasing tariffs, citing fentanyl trafficking and national security concerns.
The Canadian government, led by Prime Minister Mark Carney, has voiced disappointment over the move but remains engaged in dialogue, with LeBlanc suggesting high-level talks between Carney and Trump could occur 'over the next number of days.'
The trade tension marks the latest development in a growing economic dispute between the two countries, with potential ripple effects on key sectors including lumber, autos, and manufacturing.
Despite the tensions, US Commerce Secretary Howard Lutnick hinted at the possibility of flexibility, saying Trump might reconsider the hike if Carney eases Canada's retaliatory stance.
Canada previously responded to US trade moves with two rounds of counter-tariffs earlier this year. The first, under outgoing Prime Minister Justin Trudeau, targeted about C$30 billion in US exports, including food, apparel, and motorcycles. The second round matched US tariffs on steel, aluminum, and foreign automobiles.
However, in mid-April, the Carney government introduced exemptions for certain business inputs critical to health care, public safety, and industrial production. Automakers like General Motors and Honda, which operate Canadian manufacturing plants, were also granted relief from import duties.
The new US tariffs are expected to hit key Canadian exports, including lumber, steel, aluminum, and vehicles. While retaliatory duties have been put in place, Canada continues to allow the majority of US goods to enter tariff-free.
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Hindustan Times
8 minutes ago
- Hindustan Times
Donald Trump pulls the trigger, doubles India levy to 50%
President Donald Trump signed an executive order on Wednesday imposing an additional 25% tariff on all Indian goods entering the US, carrying out his threat made a day ago to penalise New Delhi's continued purchases of Russian oil. Trump's additional 25% tariff followed after over a week of criticism focused on New Delhi's continued purchases of Russian energy. (REUTERS) The additional 25%, due to take effect on August 27, puts India at par with Brazil as the two countries whose exports will face the highest levy of 50% on their goods. The duties would put Indian exporters at a significant disadvantage compared to their rivals in Bangladesh, Indonesia and Vietnam – which face tariffs of between 19% and 20% tariffs. 'I have received additional information from various senior officials on the actions of the government of the Russian Federation with respect to the situation in Ukraine,' Trump wrote in the executive order. 'I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil.' India hit back, reiterating that the American actions are 'unfair, unjustified and unreasonable'. 'India will take all actions necessary to protect its national interests,' ministry of external affairs spokesperson Randhir Jaiswal said in a statement, adding that it was 'extremely unfortunate' that the US had chosen to act against India 'for actions that several other countries are also taking in their own national interest'. He was alluding to continuing imports of Russian energy, especially LNG, by European Union (EU) member states that have paid Russia $105.6 billion for gas imports since the start of the invasion of Ukraine. Almost 87% of all EU imports of Russian LNG went to Spain, France or Belgium, people familiar with the matter said, asking not to be named. To be sure, the executive order continues exemptions provided earlier for sectors like pharmaceuticals and smartphones — though how long these exemptions remain is unclear. The order also exempts goods that are already in transit to America and which will clear US customs before September 17. 'The move places India among the most heavily taxed US trading partners, far above rivals such as China, Vietnam, and Bangladesh, and threatens most of India's $86.5 billion in annual exports to the US, from textiles to machinery,' according to analysis by the Global Trade Research Institute. 'The tariffs are expected to make Indian goods far costlier in the US, with potential to cut US-bound exports by 40–50%,' the GTRI analysis added. The executive order issued on Wednesday specifies that certain exemptions will continue. Among these are Section 232 national security exemptions that protect Indian pharmaceuticals — which account for about 40% of America's generic medicines — along with electronics, semiconductors and technology products that form the backbone of bilateral trade. Additional exemptions under Executive Order 14257's Annex II cover raw materials, certain metals and chemical formulations. Select product categories like apparels, vehicles and parts, furniture, organic chemicals and some food products like shrimp – which account for billions of dollars of exports -- will now face high tariffs entering the US market. Trump's additional 25% tariff followed after over a week of criticism focused on New Delhi's continued purchases of Russian energy. Washington has sought to increase economic pressure on Russia to negotiate an end to the Ukraine war by restricting Moscow's oil export revenues. India is Russia's second largest market for oil exports after China. In 2024, China purchased Russian oil worth $62.6 billion, followed by India's purchases to the tune of $52.7 billion. In the order, the US president also specified that he may – in the 21 days before the order takes effect – change the levy if 'if another country retaliates against the United States in response to this action, or if the government of the Russian Federation or a foreign country impacted by this order takes significant steps to address the national emergency and align sufficiently with the United States on national security, foreign policy, and economic matters.' In other words, Trump held out both a threat that he could ratchet up the levy or pare it back, depending on any retaliation or changes to Russia's stance in the war against Ukraine. Trump has set an August 8 deadline for Russia to agree to a Ukraine truce deal. 'There's a higher chance that India will find loopholes to concede the agri/soybean access the US has been asking for, than there is for India to halt oil purchases from Russia due to external pressure. Either way, it is unlikely that a decision will be taken on either front as long as Parliament is in session. Momentum on real solutions shouldn't be expected before August 20,' says Prerna Bountra, Deputy Director at the Ananta Aspen Centre, a New Delhi-based think tank. The rising tensions between India and the United States have also spiralled into a political controversy, with Opposition parties objecting to the government's handling of ties with America. Congress leader Rahul Gandhi called the move 'economic blackmail' by the US to bully India into an unfair trade deal, adding Prime Minister Narendra Modi should not let Indian interests be overridden. (With inputs from Rezaul H Laskar in New Delhi)
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Business Standard
8 minutes ago
- Business Standard
Anand Mahindra urges India to turn tariff turmoil into "1991 moment"
Anand Mahindra, chairman of the Mahindra Group, has called on India to turn the ongoing global tariff upheaval into an opportunity akin to the transformative economic reforms of 1991. Drawing parallels with the liberalisation that followed India's forex crisis more than three decades ago, Mahindra asked whether the current 'global Manthan' over tariffs could yield some 'Amrit' for the country. In a social media post, Mahindra said the 'law of unintended consequences' was quietly reshaping global economic priorities, triggered by the tariff war unleashed by the United States. While the short-term impact has been marked by friction, he said longer-term effects were already emerging in significant and potentially positive shifts. In Europe, he noted, the response to changing tariffs has gone beyond strategic trade adjustments. Countries such as Germany and France have ramped up defence spending, prompting a rethinking of security dependence and nudging Germany away from rigid fiscal conservatism. Mahindra said this could pave the way for an economic resurgence in Europe, giving the world a new growth engine. Similarly, in Canada — long constrained by internal trade barriers among its provinces — Mahindra observed that the same global pressures were driving efforts to dismantle inefficiencies. This, he said, could bring the Canadian economy closer to becoming a true common market, enhancing long-term resilience. These developments, Mahindra argued, show how unintended consequences can create major structural advantages. He urged India to act decisively to engineer its own set of outcomes that may seem unintended but are intentional in their transformative potential. He called for a radical improvement in India's ease of doing business, proposing the creation of a genuinely effective single-window clearance system for investment proposals. Noting that many regulatory powers lie with individual states, Mahindra suggested forming a coalition of willing states to align with a national platform to streamline and simplify approvals. If India can demonstrate speed, transparency, and predictability in this area, he said, it could become an irresistible destination for global capital. Mahindra also emphasised the need to unleash tourism as a major foreign exchange driver. Calling it one of India's most underexploited assets, he advocated urgent improvements in visa processing, tourist facilitation, and the creation of dedicated tourism corridors anchored in assured security, sanitation, and hygiene, serving as model destinations for replication nationwide. In addition to these two focus areas, he recommended broader policy action to strengthen competitiveness and resilience, including liquidity support for MSMEs, faster infrastructure investment, expanded manufacturing through enhanced production-linked incentive (PLI) schemes, and import duty rationalisation to reduce input costs for domestic manufacturers. Mahindra concluded with a call for intent-driven reform: 'Let the unintended consequences we create be the most intentional and transformative ones of all.' While acknowledging that no country can be faulted for putting its own interests first, he said India must use this moment to build a future greater than ever before.
The Hindu
8 minutes ago
- The Hindu
Brazil requests consultations at WTO over Trump's tariffs
Brazil requested consultations at the World Trade Organization over tariffs imposed by U.S. President Donald Trump against the South American nation that went into effect on Wednesday (August 6, 2025). Mr. Trump has directly tied the 50% tariff on many imported Brazilian goods to the judicial situation of his embattled ally, former President Jair Bolsonaro, who is currently under house arrest. "The United States has flagrantly violated key commitments the country has agreed upon at the WTO, such as the principle of the most favored nation and tariff ceilings negotiated at that organisation,' Brazil's foreign ministry said in a statement. The most favoured nation principle is a cornerstone of Geneva-based WTO, whose aim is to get countries to respect trade agreements. The principle directs its members to treat each other equally in trade. WTO panels are set if no agreement is reached in disputes between members. 'Brazil's government reiterates its availability for negotiation and hopes these consultations contribute to a solution to the matter,' the Brazilian foreign office said. The U.S. government has not made comments about Brazil's move. WTO needs revamp: Lula Earlier, a Brazilian government official told The Associated Press that the case could drag on and there's no guarantee of success. The official, who wasn't authorised to discuss the matter publicly, spoke on condition of anonymity. Brazilian President Luiz Inácio Lula da Silva has repeatedly said that the trade body needs a revamp to be enabled to mediate in conflicts. Brazil's government estimates that 35.9% of the country's goods shipped to the American market have been affected. That is about 4% of Brazil's total exports. Mr. Trump directly tied the 50% tariff on imported Brazilian goods to the judicial situation of his embattled ally, former President Jair Bolsonaro, who is currently under house arrest. Last month, Bolsonaro was ordered to wear an electronic ankle monitor and to obey a curfew while the proceedings are underway. Lula is yet to speak about the move. On Tuesday, the leftist leader said he wouldn't call Mr. Trump to talk about trade 'because he doesn't want to' speak about it. Lula said that he might instead 'invite him to attend (November's climate summit) COP in Belem.'
