B.C. forestry executive warns against cutting bad deal after U.S. raises tariffs
Brian Menzies, executive director of the Independent Wood Processors Association of British Columbia, says being 'kowtowed and pushed over' is neither good for Canada nor the United States.
Menzies says 'people respect people who stand up for what's important for them,' and if Canada does not stand up now, it won't be in a 'strong position to advocate for what's important.'
Menzies' comments come after Trump had announced tariffs of 35 per cent on all Canadian goods outside the Canada-United States-Mexico Agreement on free trade.
Read the full report from The Canadian Press
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Yahoo
20 minutes ago
- Yahoo
After a blown deadline, what next for US-Canada trade?
A self-imposed deadline for a new US-Canada trade deal came and went on Friday. So what happens next for these two deeply entwined neighbours? Canada and the US have been locked in a tariff war for six months and, despite talk of "intense" negotiations in recent weeks, a trade agreement remains elusive. Both President Donald Trump and Prime Minister Mark Carney have poured cold water on the idea they will reach a quick, and tariff-free, deal. And Trump's open criticism of Canada's move to recognise a Palestinian state dashed hopes for a last-minute agreement earlier this week. The pessimism marks a shift in tone from as recently as June's G7 meeting, when the two leaders set themselves the summer deadline. Canadian negotiators have come to the conclusion that "it's not the end of the world" if a quick deal isn't reached and "that quality over speed and a rushed agreement matters a lot", said Fen Hampson, a professor of international affairs at Carleton University in Ottawa. Carney - who has been tight-lipped about the negotiation details - has said as much himself, repeating that just "any deal" won't do. Still, there are pressures on both sides to give businesses a reprieve. Conservative leader Pierre Poilievre said on Friday he shares "Canadians' disappointment" that a deal was not reached by the deadline. He urged Carney's Liberals to do more to "take back control of our economic future". Canada is now facing a 35% tariff rate, though there is a carve out for goods compliant under a current free trade deal. American global tariffs on steel, aluminium, autos and auto parts are hurting, as the US is a top market for those sectors. On Sunday, Canada's minister for US-Canada trade Dominic LeBlanc told the BBC's US partner CBS News that trade talks will continue, and that negotiations so far have been "informative, constructive and cordial." LeBlanc added he expects Carney and Trump to speak again in the coming days. "We think there is an option of striking a deal that will bring down some of these tariffs, and provide greater certainty to investment," he said. The Trump administration has justified those tariffs by claiming a lack of co-operation on stemming the flow of illicit drugs like fentanyl. Canada denies that, noting about 1% of US fentanyl imports originate in Canada. It has also brought in new border protections and a "fentanyl czar" in recent months in an effort to address Trump's concerns. Threatened tariffs on copper and the expected end of a global tariff exemption used by shoppers of goods under $800 could also pinch. Canada has responded with C$60bn ($43.3bn; £32.3bn) in counter tariffs on various American goods - the only country along with China to directly retaliate against Trump. "It comes as no surprise that businesses are craving certainty after months and months of tumultuous announcements," said Catherine Fortin-Lefaivre, vice-president of international policy and global partnership at the Canadian Chamber of Commerce. "But at the same time, they're not craving certainty at the expense of a really bad deal." A few factors give Canada some breathing room. On paper, it looks like the country is facing a severe tariff rate from the US, but trade is currently more free than the levies suggest at first glance. In March, Trump announced a tariffs reprieve on goods compliant with the Canada–United States–Mexico Agreement, known in Canada as CUSMA and the US as the USMCA. That deal - negotiated during Trump's first term in office - came into force five years ago. Almost 90% of Canadian exports to the US are ultimately able to cross the border duty free, if firms file out necessary paperwork, under that agreement. "That has given us a buffer, no question about it, that other countries don't have right now," said Prof Hampson. It means Canada is overall paying a much lower tariff rate than many of the deals already inked with the US, like the EU, South Korea and Japan at 15%, or Indonesia and the Philippines at 19%. Ottawa has also brought in some relief programmes for affected industries and has also collected about C$1.5bn more in import duties than in the same period last year, due to the counter tariffs. Why Trump's global tariffs 'victory' may well come at a high price See the Trump tariffs list by country Five things now pricier in Canada due to tariffs 'In business, indecision is killer' - Canadian firms seek certainty And while in the US consumer confidence is up and prices there have remained contained, it helps Canada's negotiating position if they can wait for Americans to start feeling the pain of tariffs. "It's Americans who are going to squawk," said Prof Hampson. Ms Fortin-Lefaivre predicts US businesses, especially smaller firms that don't have the same resources to withstand them, will be pressuring political leaders. "So that pressure could play to our advantage," she said. Canadians also appear willing to give the new prime minister some leeway. Opinion polls suggest they are generally satisfied with his handling of trade. Carney "understands that doing what's best for the economy right now is actually what's best for him politically", Martha Hall Findlay, director of the University of Calgary's School of Public Policy and a former Liberal MP, told the BBC. Trump has said he is imposing tariffs to boost domestic manufacturing, open overseas markets and raise money for the government. He is also using them to push countries like Canada on a range of non-trade issues, including military spending. In the last few weeks, Ottawa has significantly ramped up its defence spending, boosted security at the shared border and killed a digital tax opposed by American tech firms. Those moves show Canada is "doing what the Americans wanted us to do", said Ms Fortin-Lefaivre. She hopes Canadian negotiators are pushing for tariffs to be as low as possible, as well as working to ensure the two deeply integrated supply chains are able to continue working together. Canada is pressing for relief on the 50% steel and aluminium tariffs, which are squeezing US automakers. And on Thursday, Treasury Secretary Scott Bessent signalled in an interview with CNBC that is an option on the table. Trump meanwhile, has raised a number of longstanding trade irritants besides fentanyl, including Canada's protections around its dairy industry. Ottawa has previously warned of more countermeasures to come if talks collapse, though political appetite for that may be waning. Retaliatory tariffs "haven't seemed to have had the kind of impact that we would hope for", British Columbia Premier David Eby recently told Bloomberg. On retaliation, Prof Hampson said: "The Americans have escalation dominance here. So you want to be smart about it." A spokesperson for Carney declined to say whether more countermeasures remained on the table. Meanwhile, Canadian negotiators have been in Washington most of this week and keep pushing talks forward, with the minister responsible for Canada-US trade saying on Friday an acceptable agreement "was not yet in sight". "We all crave the certainty of a deal," said Ms Fortin-Lefaivre. But research by her business group suggests firms are making contingency plans. Almost 40% of goods exporters have already diversified suppliers outside the US, and 28% have diversified buyers. They are also looking ahead to what may be more challenging talks with CUSMA, which has proven a critical backstop, as it is up for review next year. It is all part of a wider push by the country to diversify trade away from the US, pull down barriers that have hindered trade between provinces, and press forward more quickly on major projects. The economic links between the two countries will stay strong - Canada will still be one of the largest trading partners and economic and security allies of the US. But the irony is that Trump's threats may be "forcing Canada to understand we have to get our own economic house in order," said Ms Hall Findlay. "It's going to take some really tough decisions. And I do think our current government gets this." Error in retrieving data Sign in to access your portfolio Error in retrieving data
CBS News
22 minutes ago
- CBS News
Transcript: Dominic LeBlanc, Canada's U.S. Trade Minister, on "Face the Nation with Margaret Brennan," Aug. 3, 2025
The following is the transcript of an interview with Dominic LeBlanc, Canadian Minister for U.S.-Canada Trade, that aired on "Face the Nation with Margaret Brennan" on Aug. 3, 2025. MARGARET BRENNAN: We go now to the Canadian Minister for U.S.-Canada trade, Dominic LeBlanc, who joins us this morning from Moncton, Canada. Good morning to you. MIN. LEBLANC: Good morning, Ms. Brennan. MARGARET BRENNAN: You were just here, in Washington, negotiating. And while the talks are officially continuing, you left town without a deal, and you left town with, now, what is a 35% tariff on goods. How much of a setback was the President's decision to do that while you are still at the table? MIN. LEBLANC: So we were obviously—obviously disappointed by that decision. We believe there's a great deal of common ground between the United States and Canada in terms of building two strong economies that work well together. That's been the history of the 40-year Free Trade Agreement that goes back to President Reagan. We were pleased the United States is respecting the terms of the USMCA agreement. That's vital, we think, to the cost of living and affordability, certainly in the United States, it's true in Canada, as well. So, we're going to continue to do the work. We left, always, with a better understanding of the American concerns in the trading relationship. Ambassador Greer, Secretary Lutnick, engaged with us in constructive, cordial conversations. So we're prepared to stick around and do the work needed. We think, Ms. Brennan, that the economies of both countries are strengthened when we do things together, the trading relationship between Canada and the United States is unlike other partners. One description, without which I thought was very apt; we don't sell things to each other as much as we build things together. And that's why it's- it's difficult in this relationship when so much is integrated. But we remain very optimistic. MARGARET BRENNAN: But, you heard Ambassador Greer say Canada—because Canada retaliated to the initial tariffs all the way back in April, when Prime Minister Trudeau was in office, you're paying the price now, even though you have a new government in place. If that's the issue, why not make that concession and pull back? MIN. LEBLANC: So, Prime Minister Carney, our new prime minister, has, we think, built a very business-like, respectful relationship with President Trump. We think that's obviously very important to Canada, and we think to the United States. We're dealing with, take, for example, the steel sector in Canada. It's a strategic importance to national security in Canada, as it is for President Trump and the American economy. We now have a situation where there's a 50% tariff. We're the biggest steel export market for the United States. We have a 25% tariff. There's a 50% tariff when we want to sell something into the United States. So, effectively, we're blocked from doing that. But the national security interest of Canada requires that we have a viable steel and aluminum sector, and my conversations with Secretary Lutnick and others are that therein lies an example, where if we do the right work together, we have, Ms. Brennan, the toughest rules of any country dealing with Chinese dumping into Canada. We have melt and pour tracing, so that products coming from other countries with Chinese steel can't be dumped into the Canadian market. So, we're looking and advancing ideas where we can do that work with the United States, at the same time, ensuring that our economy continues to have sectors vital to the economic future of Canada. But, that's not in contradiction to President Trump's national security objectives in the United States, of course. MARGARET BRENNAN: Well, I want to talk to you more about this idea of the so-called fortress North America to take on China, and some of the specifics of the dispute on the other side of this commercial break. Please stay with us. We'll have more questions for Minister LeBlanc shortly. We'll you see in a moment. ((COMMERCIAL BREAK)) MARGARET BRENNAN: Welcome back to Face the Nation. We return to our conversation with the Canadian Minister for US-Canada trade, Dominic LeBlanc. Minister, we were just talking about some of the sectoral tariffs, the metals. American automakers, GM, Ford, Stellantis, they have all said that these tariffs are hurting their profits. The 50% metal tariffs, which use Canadian aluminum, the Secretary of the Treasury was talking about those just the other day, they're seeing the impact here in the United States, a bit of a backfire in some ways. Do you see room for maneuver on these? Are they willing to negotiate with you on those tariffs? MIN. LEBLANC: Ms. Brennan, we hope so. And, as I say, we're encouraged by the conversations with Secretary Lutnick and Ambassador Greer, but we're not yet where we need to go to get the deal that's in the best interest of the two economies. But your example is a good one. Canadian aluminum companies massively supply the American market. And by putting a 50% tariff on aluminum from Canada, you've increased the price of a whole series of goods. The automobile sector, again, is an example where there's been deep integration. We're the biggest customer of U.S. made automobiles. Heavily, heavily importing into Canada light and heavy-duty trucks. 50% of the cars that we finish in Canada and sell to the United States are made up of American parts. So, therein lies a perfect example where, instead of tariffing one another, or President Trump for his national security reasons, under his Section 232, tariffs, wants to have a strong domestic steel, aluminum automobile sector. Well, so does Canada. And we understand and respect totally the President's view in terms of the national security interest. In fact, we share it, and what we've said to our American counterparts is, how can we structure the right agreement, where we can both continue to supply one another in a reliable, cost-effective way that preserves jobs essential to the American economy, but the same thing is true, obviously in Canada as well. MARGARET BRENNAN: Are there any plans for the two leaders to speak? I saw President Trump said your prime minister called him Thursday, and they just never connected. I mean, are tensions that high? And given the changing justification for the tariffs, do you really feel like you're negotiating with the other side in good faith? MIN. LEBLANC: Sure, we do. Of course we do. As I say, the conversations have been informative, constructive, and cordial. I would expect the Prime Minister will have a conversation with the President over the next number of days. That's certainly my plan, again with Secretary Lutnick, recognizing that we think there is an option of striking a deal that will bring down some of these tariffs, provide greater certainty to investment. We, Ms. Brennan, we passed, in Canada, our version of the President's One Big, Beautiful Bill. It's called the One Canadian Economy Act, which we think will unlock up to $500 billion of investment in Canada for things like pipelines, port infrastructure, mines, all of which offer huge opportunities to American businesses as well. So, we think there's a great deal- a great deal to work on together. MARGARET BRENNAN: All right, Minister, we'll see if you can get one. We'll be right back.
Bloomberg
22 minutes ago
- Bloomberg
Canadian Trade Envoy Still Sees Chance to Ease Trump's Tariffs
Prime Minister Mark Carney and US President Donald Trump are expected to talk 'over the next number of days,' a Canadian official said, after the two governments failed to reach a deal before an Aug. 1 tariff deadline. 'We think there is an option of striking a deal that will bring down some of these tariffs and provide greater certainty to investment,' Dominic LeBlanc, Canada's minister in charge of US trade, said on CBS's Face the Nation on Sunday. LeBlanc also said he plans to speak with US Commerce Secretary Howard Lutnick.
