Despite Trump's tariff increase, former N.L. premier satisfied with PM's trade strategy

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5 days ago

As the United States increases tariffs on Canadian imports to 35 per cent, former Newfoundland and Labrador premier Andrew Furey says Prime Minister Mark Carney's slow and steady approach has been the best thing for the country.
"It's been a very wise and strategic, a cohesive approach on behalf of all Canadians," Furey told CBC News on Thursday.
Furey called Carney's approach calm and rational, adding that he thinks it is the "most sensible path forward."
"We need to make sure that this is the best deal on behalf of all the industries, on behalf of all the workers, on behalf of all Canadians and all regions within Canada," Furey said.
In February, Furey called Trump's tariff threat a "historic existential threat."
He said he still believes it.
By touting issues like fentanyl and border security as his rationale for the tariffs, Furey said Trump has created an environment of chaos.
And by having his sights set on Canada, Furey believes Trump has an imperialistic agenda.
"[Trump is] focused on creating economic turmoil so he can potentially extract, not only the value, but potentially even the land mass itself," he said.
WATCH | Former N.L. premier reacts to Carney trade approach:
Ontario Premier Doug Ford told CNN on Thursday that Trump is the most disliked politician in Canada, and described his tariffs as an attack on "his closest family member."
Furey said Ford is right, adding that Canadians do see tariffs as an attack.
"It's an attack on our industries, it's an attack on our resources, it's an attack on our historic and lengthy friendship," said Furey.
Relationship with Mexico important
For now, the White House says that the tariffs on Canada will not be applied to goods that are compliant with the Canada-United States-Mexico Agreement, or CUSMA.
And, most Canadian goods likely qualify, but Ford is also warning that Trump could try to reopen it.
Earlier this week, Finance Minister François-Philippe Champagne and Foreign Affairs Minister Anita Anand travelled to Mexico looking to boost economic ties.
Furey thinks Canada's relationship with Mexico is very important if Trump seeks to renegotiate CUSMA.
"It's important that there's alignment and strategic thought processes existing between the partners like Canada and Mexico," he said.
"We're next to the United States, but we don't want to be relying on the United States."
Business bypassing U.S.
In St. John's, Colonial Auto Parts president Doug Squires stopped working with U.S. suppliers last spring. And now, he said, everything is going according to plan.
Squires said he has been in discussion with offshore suppliers and all of his products, except car paint and exhaust, can be sourced outside the U.S.
He said because the U.S. auto industry is so large, most suppliers ship into the U.S. before shipping to Canada. This makes prices higher due to tariffs.
So far, he has been able to avoid price increases.
"By bypassing the United States, we eliminate the inclusion of that cost into our acquisition price and which will allow us to maintain pricing," Squires said.
However, not all companies can do this, he said, because many offshore companies require high volume orders.
"You need to bring it in in container loads in order to get the economies of scale from our pricing perspective," he said.
Squires said the most challenging part is the uncertainty.
"That uncertainty tends to make people be a little reluctant to make purchases or maintain their vehicles as they should."
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