Trump pushed tariffs on Canada to 35 per cent, but a CUSMA carveout creates a shield
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11 minutes ago
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Ontario, Saskatchewan at odds over Canada's response to Trump tariffs
Ontario Premier Doug Ford warns Donald Trump could end CUSMA 'tomorrow, with one signature,' and that all Canadian leaders are on the same page. Ontario and Saskatchewan remained at odds over Canada's response to U.S. President Donald Trump's escalating trade war Wednesday as the premiers prepared to meet with the prime minister to talk trade. Prime Minister Mark Carney was holding virtual meetings in private with his cabinet and the premiers Wednesday afternoon, less than a week after Trump ramped up his trade assault on Canada with a baseline 35 per cent tariff. The new tariff applies only to goods not covered by the Canada-United States-Mexico agreement on free trade, better known as CUSMA. The latest levy took effect on Friday after the two countries failed to hit an Aug. 1 deadline to secure a new trade agreement. Before meeting with Carney, Ontario Premier Doug Ford said he was frustrated by the impacts of high U.S. tariffs on his province's economy and called again for retaliatory tariffs. '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,' Ford told reporters at a news conference Wednesday in Thornhill, Ont. 'They understand strength, not weakness, and we should never, ever roll over and be weak.' Saskatchewan Premier Scott Moe, meanwhile, said Wednesday Canada should dial down its retaliatory tariffs. '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, adding that Canada is largely 'protected' by the CUSMA trade pact. Moe said his province is working to protect industries that are being hit hard by tariffs, including the steel sector. 'What we've done is pull forward a significant amount — 10 years, actually — of Crown procurement to support the steel industries here in Saskatchewan,' he said. Moe gave credit to Carney for his government's efforts to strengthen trade ties with other countries, including Mexico, particularly while Canada remains subject to China's canola oil and meal tariffs. When asked to explain why his government ended up putting American liquor back on the shelves and returning to its standard procurement processes, Moe said the government already prioritizes Saskatchewan companies. 'We need to get to that space in a more solid form with our largest trading partner, the United States of America, and someone is going to have to take the early steps,' he said, noting Alberta has also shifted its policies. Alberta Premier Danielle Smith's office said she would not be issuing any statements ahead of the meeting. Ford said he wants to see more done to stimulate the economy. He called on Ottawa to cut taxes and said the Bank of Canada should drop its interest rate. 'We have to get the governor of the Bank of Canada to lower those damn interest rates from 2.75,' he said. 'Knock 'em down. Build confidence. 'Let's work together on getting rid of the HST on homebuyers, and not just first (time) ones. Let's stimulate the market and we'll follow suit if the federal government does that.' Ford said Wednesday he had a 'good conversation' with U.S. Commerce Secretary Howard Lutnick on Tuesday that was 'positive,' and he believes the 'prime minister is doing everything in his power to get a fair trade deal with the U.S.' Carney told a press conference in B.C. on Tuesday that he has not talked to Trump in recent days, but will speak with him 'when it makes sense.' The prime minister added that about 85 per cent of trade with the U.S. remains tariff-free because of CUSMA. Sector-specific tariffs, like the 50 per cent duty on steel, aluminum and copper, remain in place. Foreign Affairs Minister Anita Anand and Finance Minister François-Philippe Champagne were in Mexico City on Wednesday, part of a two-day mission to meet with Mexican officials and businesses on trade. With files from Lisa Johnson in Edmonton, Alta. and Allison Jones in Thornhill, Ont. This report by The Canadian Press was first published Aug. 6, 2025 David Baxter and Kyle Duggan, The Canadian Press
CTV News
20 minutes ago
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Mexico seeks more trade with Canada in face of Trump tariffs
Mexican President Claudia Sheinbaum, left, speaks before a meeting with Prime Minister Mark Carney at the G7 Summit in Kananaskis, Alta., on Tuesday, June 17, 2025. THE CANADIAN PRESS/Darryl Dyck Mexico's president said Wednesday her country will seek to expand trade with Canada amid U.S. President Donald Trump's tariff offensive, which threatens a three-way free trade deal between the North American neighbors. Trump has imposed additional duties on both countries despite the existence of the USMCA treaty, which he has said he wants to renegotiate. He raised tariffs on isolated Canadian imports from 25 to 35 percent from August 1, but has agreed to delay a 30 percent general tariff on imported Mexican goods for 90 days until October. Both countries are affected by global U.S. tariffs on automotive, aluminum and steel exports. Mexican President Claudia Sheinbaum has been hosting senior Canadian officials to discuss strategy in the face of the tariff torrent. 'We have the treaty, obviously, but we also want Canadian companies to continue investing... to expand direct trade between Canada and Mexico,' Sheinbaum said Thursday after meeting Canada's Finance Minister Francois-Philippe Champagne and Foreign Minister Anita Anand. Canada has said the Mexico talks would focus on economic growth, security and trade. The meetings also serve to prepare for a visit by Canadian Prime Minister Mark Carney, for which no date has been announced. Trump has justified the tariffs by accusing the United States' neighbors of not doing enough to stem the flow of undocumented migrants and fentanyl across their borders.
CTV News
21 minutes ago
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Trump envoy Witkoff meets Putin ahead of Russia-Ukraine peace deadline
This photograph distributed by Russian state agency Sputnik shows Vladimir Putin and Steve Witkoff in Moscow. Photographer:Russian President Vladimir Putin held talks with U.S. President Donald Trump's special envoy Steve Witkoff in Moscow on Wednesday, days before the White House's deadline for Russia to reach a peace deal with Ukraine or potentially face severe economic penalties that could also hit countries buying its oil. The meeting between Putin and Witkoff lasted about three hours, the Kremlin said. Putin's foreign affairs adviser Yuri Ushakov said that Putin and Witkoff had a 'useful and constructive conversation' that focused on the Ukrainian crisis and, in a nod toward improving relations between Washington and Moscow, 'prospects for possible development of strategic cooperation' between the United States and Russia. Trump said in a post on his Truth Social media network that Witkoff 'had a highly productive meeting' with Putin in which 'great progress was made.' Trump said he updated America's allies in Europe about the meeting and that they will work toward an end to the Russia-Ukraine war 'in the days and weeks to come.' The threat of U.S. sanctions Earlier on Wednesday, a White House official said the U.S. was still expected to impose secondary sanctions against Russia on Friday, after a 10-day deadline that Trump imposed is to expire. The White House has not yet released details about the sanctions. The official was not authorized to speak publicly and spoke on condition of anonymity. Washington has threatened 'severe tariffs' and other economic penalties if the killing doesn't stop. Trump also has threatened to slap tariffs on nations that buy Russian oil, which could increase import taxes dramatically on China and India He said Tuesday he hadn't publicly committed to any particular tariff rate, and indicated that his decision could depend on an outcome of the meeting with Putin. Trump has expressed increasing frustration with Putin over Russia's escalating strikes on civilian areas of Ukraine, intended to erode morale and public appetite for the war. The intensified attacks have occurred even as Trump has urged the Russian leader in recent months to relent. Ukraine's President Volodymyr Zelenskyy said Wednesday evening that he and Trump spoke on the phone after Witkoff met with Putin. He said 'European leaders also participated in the conversation,' and 'we discussed what was said in Moscow.' 'Our common position with our partners is absolutely clear: The war must end,' Zelenskyy said. 'We all need lasting and reliable peace. Russia must end the war that it started.' He didn't offer any details of the conversation. The fighting grinds on Overnight from Tuesday to Wednesday, Russian forces hit a recreational center in Ukraine's southern Zaporizhzhia region, killing two people and injuring 12, including two children, regional Gov. Ivan Fedorov said Wednesday. Russian forces launched at least four strikes on the area and initially attacked with powerful glide bombs. 'There is zero military sense in this strike. Only cruelty to intimidate,' Zelenskyy said in a post on Telegram. Russia also struck the Ukrainian power grid and facilities for heating and cooking gas, Zelenskyy said, as Ukraine makes preparations for winter. Western analysts and Ukrainian officials say Putin is stalling for time and avoiding serious negotiations while Russian forces push to capture more Ukraine land. A Russian offensive that started in the spring and is expected to continue through the fall is advancing faster than last year's push but is making only slow and costly gains and has been unable to take any major cities. The situation on the front line is critical for Ukrainian forces but defenses are not about to collapse, analysts say. Risks of more pressure Stepping up diplomatic and economic pressure on the Kremlin risks stoking international tensions amid worsening Russia-U.S. relations. Putin has given no hint that he might be ready to make concessions. Instead, the Russian leader and senior Kremlin officials have talked up the country's military strength. Putin announced last week that Russia's new hypersonic missile, which he says cannot be intercepted by current NATO air defense systems, has entered service. Russia announced Tuesday that it no longer regards itself as bound by a self-imposed moratorium on the deployment of nuclear-capable intermediate range missiles, a warning that potentially sets the stage for a new arms race. Former Russian President Dmitry Medvedev, meantime, warned that the Ukraine war could bring Russia and the U.S. into armed conflict. Trump responded to that by ordering the repositioning of two U.S. nuclear submarines. Kremlin spokesman Dmitry Peskov on Monday welcomed Witkoff's visit. 'We consider (talks with Witkoff) important, substantive and very useful,' he said. Trump initially gave Moscow a 50-day deadline, but later moved up his ultimatum as the Kremlin continued to bomb Ukrainian cities. However, Trump himself doubted their effectiveness, saying Sunday that Russia has proven to be 'pretty good at avoiding sanctions.' 'They're wily characters,' he said of the Russians. The Kremlin has insisted that international sanctions imposed since its February 2022 invasion of its neighbor have had a limited impact. Ukraine maintains the sanctions are taking their toll on Moscow's war machine and wants Western allies to ramp them up. Associated Press reporter Michelle L. Price in Washington contributed to this report.
