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Trump's UK deal tests Canada's trade future

Trump's UK deal tests Canada's trade future

Time of India11-05-2025

US President
Donald Trump
on Thursday (May 8) unveiled a preliminary
trade
agreement with the
United Kingdom
framed as a historic breakthrough.
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Trump told reporters in the
Oval Office
, 'The final details are being written up,' as he praised the deal for boosting American ethanol and beef exports while retaining a baseline 10 per cent tariff on most UK imports.
British officials confirmed that steel and aluminum duties would be lifted, while tariffs on automobiles would drop to 10 per cent for up to 100,000 vehicles annually.
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The deal gave nations all across the world, including
Canada
, insight related to the objectives of his campaign to use tariffs to disrupt international trade.
Trump
began his global trade war with "reciprocal" tariffs in April, but a few hours later, he withdrew the most damaging ones.
Trump maintained his 10 per cent global tariff while claiming that the 90-day break would allow nations to negotiate a deal. 'This was very serious. It would have meant people would have lost their jobs without this breakthrough,' said UK Business Secretary Jonathan Reynolds.
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US Agriculture Secretary Brooke Rollins called the agreement 'hugely important,' citing $5 billion in new American export opportunities.
For Canadian officials watching closely, the deal offers both a model and a warning. Canada was hit with sweeping tariffs in March, including those on automobiles, steel, and aluminum, with Trump citing the opioid crisis and fentanyl flows from the north as justification. Some of these were rolled back for CUSMA-compliant goods, but key sectors remain vulnerable.
Through this deal, the implications for Canada's tightly integrated auto industry are stark. 'Under this deal, it will now be cheaper to import a UK vehicle with very little US content than a CUSMA-compliant vehicle from Mexico or Canada that is half American parts,' said Matt Blunt, president of the American Automotive Policy Council.
In Ottawa, Prime Minister Mark Carney's recent Oval Office visit with Trump marked a potential turning point. Trump called CUSMA 'still very effective' and praised Carney as 'very talented.' The two leaders appeared cordial, a stark shift from Trump's past jabs at former PM Justin Trudeau.
Carney, elected on a platform centered on economic stability and rebuilding investor confidence, made trade a priority after a campaign in which the economy was the defining issue. His visit to Washington was widely seen as an effort to smooth tensions and signal a more cooperative approach.
But seeing Trump's track record, Canada should expect hard bargaining. 'It shows that the Trump administration is amenable to negotiation,' said Carleton University's Fen Osler Hampson. 'The reality is, we are entering an era of managed trade.' The UK trade agreement suggests some kind of US tariff on Canadian goods could remain in place, even if trade talks between Ottawa and Washington largely succeed, Hampson said, 'If CUSMA stays in place, not only can we live with Trump's tariffs, if they are lower we may actually benefit vis-a-vis other countries who sell in the US market.'
The
UK deal
also showed how political style may matter. Christopher Sands, director of the Center for Canadian Studies at Johns Hopkins University, said British Prime Minister Keir Starmer's 'persistence and friendly professionalism' proved effective with Trump.
While Trump appears open to deals, his motivations remain transactional. 'He doesn't believe in trade deficits,' said Henry Olsen, a senior official at the Public Policy Center.
Olsen also noted that although Trump exaggerates the US trade deficit with Canada, largely due to energy imports, he will expect any future agreement to reduce it. 'That will be extremely difficult for Prime Minister Carney to do.'

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Inside Putin's India pivot: Why Russia is trying to woo New Delhi into alliance with China
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Time of India

time29 minutes ago

  • Time of India

Inside Putin's India pivot: Why Russia is trying to woo New Delhi into alliance with China

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Iran says no sanctions relief in US nuclear proposal
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Hindustan Times

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  • Hindustan Times

Iran says no sanctions relief in US nuclear proposal

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Indian Express

time44 minutes ago

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UPSC Essentials brings to you its initiative of subject-wise quizzes. These quizzes are designed to help you revise some of the most important topics from the static part of the syllabus. Attempt today's subject quiz on International Relations to check your progress. 🚨 Click Here to read the UPSC Essentials magazine for May 2025. Share your views and suggestions in the comment box or at The Overseas Citizenship of India (OCI) card holder: 1. is essentially a foreign passport holder. 2. can get a life-long visa for visiting India. 3. not exempted from registration with local police authority for any length of stay in the country. 4. The United Kingdom has the maximum number of registered OCI card holders. Select the correct answer using the codes given below: (a) 1, 2 and 3 (b) 2, 3 and 4 (c) 1 and 2 only (d) 3 and 4 only Explanation — British-Indian academic and author Nitasha Kaul, who teaches at the University of Westminster in London, said that her Overseas Citizenship of India (OCI) status has been cancelled. What is OCI? — The OCI scheme, which was implemented in August 2005, allows for the registration of all Persons of Indian Origin (PIOs) who were citizens of India on January 26, 1950, or later, or who were eligible to become citizens of India on that date. — An OCI card bearer, essentially a foreign passport holder, is granted a multiple-entry, multi-purpose life-long visa for visiting India and is exempt from registration with local police authorities for any duration of stay in the country. Hence, statements 1 and 2 are correct and statement 3 is not correct. — According to government figures, there were over 45 lakh registered OCI card holders from 129 countries in 2023. The United States led the list with more than 16.8 lakh OCI card holders, followed by the United Kingdom (9.34 lakh), Australia (4.94 lakh), and Canada (4.18 lakh). Hence, statement 4 is not correct. Therefore, option (c) is the correct answer. Which of the following countries are members of the South American trading bloc 'MERCOSUR'? 1. Brazil 2. Chile 3. Paraguay 4. Uruguay Select the correct answer using the codes given below: (a) 1, 2, 3 and 4 (b) 1, 2 and 4 (c) 2, 3 and 4 (d) 1, 3 and 4 Explanation — The visiting President of Paraguay, Santiago Peña Palacios, was told by Prime Minister Narendra Modi that the two countries are 'united in the fight against terrorism' and can work together to combat 'shared challenges' like cybercrime, organised crime, and drug trafficking. — India and Paraguay are unified in their fight against terrorism. There is enormous potential for collaboration in combating common threats such as cybercrime, organised crime, and drug trafficking. — The Prime Minister also mentioned New Delhi's advantageous trade relationship with the South American trading bloc MERCOSUR, which includes Argentina, Brazil, Paraguay, Bolivia, Venezuela, and Uruguay. Therefore, option (d) is the correct answer. With reference to the Indian tourists in the Philippines, consider the following statements: 1. There has been a decline in Indian tourists visiting the archipelago over the past few years. 2. The number of Indian nationals visiting the archipelago in 2024 decreased year-on-year and was approximately 50 per cent lower than the 2022 levels. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Explanation — Air India, part of the Tata Group, has announced that non-stop flights between Delhi and Manila would begin on October 1, connecting the Indian and Philippine capitals for the first time in almost a decade. Philippine Airlines discontinued non-stop flights between India and the Philippines in 2013, citing poor demand. — The declaration by Air India follows the Philippines' decision to waive visa requirements for Indian tourists for up to 14 days, joining other Southeast Asian countries such as Thailand and Malaysia. — The Philippines, which has some of the best beaches and beautiful islands, has experienced a significant increase in Indian visitors visiting the archipelago over the last few years. Hence, statement 1 is not correct. — According to figures from the Philippines' tourist authority, the number of Indian nationals visiting the archipelago in 2024 increased 12.4% year on year to around 79,000. The figure was around 53% greater than 2022 levels. Hence, statement 2 is not correct. Therefore, option (d) is the correct answer. With reference to the Group of Seven (G7), consider the following statements: 1. The Group was established as a platform for economic and financial cooperation in response to the 1973 energy crisis. 2. The European Union participates in the Group and is represented at the summits by the President of the European Council and the President of the European Commission. 3. G7 host countries can not invite countries as guest countries or outreach partners. 4. The G7 expanded into the G8 between 1997 and 2013, with the inclusion of China. How many of the statements given above are correct? 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The European Union also participates in the Group, and the Presidents of the European Council and the European Commission attend the summits. Hence, statement 2 is correct. — The EU does not have the rotating chairmanship of the G7. — Between 1997 and 2013, the G7 evolved into the G8, which now includes Russia. However, Russia's participation was suspended in 2014 due to the unlawful annexation of Crimea. Hence, statement 4 is not correct. — Usually, G7 host countries invite some countries as guest countries or outreach partners. Canada had so far invited Ukraine and Australia. Hence, statement 3 is not correct. Therefore, option (b) is the correct answer. (Other Source: With reference to the Temporary Protected Status (TPS), consider the following statements: 1. It is a temporary immigration status provided to nationals of certain countries experiencing problems that make it difficult or unsafe for their nationals to be deported there. 2. Recently, the US has terminated the Temporary Protected Status (TPS) provided to Nepal. 3. It provides a work permit and protection from deportation to foreign nationals from those countries who are in the United States at the time the U.S. government makes the designation. Which of the statements given above are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Explanation — According to a media source, the United States has terminated Nepal's Temporary Protected Status (TPS) following the 2015 earthquake. Hence, statement 2 is correct. — TPS allows immigrants from designated countries who do not have another legal status to stay in the United States for up to 18 months and obtain lawful work authorisation if their social circumstances prevent them from returning safely. — TPS is a temporary immigration status granted to nationals of certain countries who face issues that make deportation difficult or risky. Hence, statement 1 is correct. — It is a temporary immigration status granted to nationals of particular countries who are experiencing an ongoing armed conflict, an environmental disaster, or extreme and temporary circumstances. It grants foreign citizens from those nations a work permit and protection from deportation if they are in the United States at the time the government announces the designation. Hence, statement 3 is correct. Therefore, option (d) is the correct answer. (Other Source: With reference to Golden Dome missile defence system, consider the following statements: 1. It is inspired by Israel's much lauded Iron Dome system — a short-range, ground-to-air, air defence system. 2. It has been in the news since Russia used it against Ukraine, which ultimately led to NATO's sanctions. Which of the statements given above is/are true? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Explanation — US President Donald Trump has offered the 'Golden Dome' missile defence system for free to Canada, which had shown interest after the Republican leader announced it but added a rider that Ottawa can have it without paying any charge 'if it becomes part of the US' 51st State'. — First floated by Trump this January, the Golden Dome is inspired by Israel's much lauded Iron Dome system — a short-range, ground-to-air, air defence system. But it is far more ambitious in scale and scope, and seeks to integrate 'next-generation' technologies across land, sea, and even space. Therefore, option (a) is the correct answer. With reference to the International Institute of Administrative Sciences, consider the following statements: 1. The Department of Administrative Reforms and Public Grievances has represented India as a Member State of the International Institute of Administrative Sciences since 1998. 2. The International Institute of Administrative Sciences is a Federation of 31 Member Countries. 3. While the IIAS is not a formally affiliated body of the UN, it actively engages with the UN's work in public administration. 4. In the 100 years history of IIAS, election to the post of President was held by ballot process in 2025 and it is the first time that India has secured the historic mandate for the Presidency of the IIAS. Which of the statements mentioned above is/are true? (a) 1 and 3 only (b) 2 and 4 only (c) 1, 3 and 4 only (d) 1, 2, 3 and 4 Explanation — The Department of Administrative Reforms and Public Grievances has represented India as a Member State of the International Institute of Administrative Sciences since 1998. The International Institute of Administrative Sciences is a Federation of 31 Member Countries, 20 National Sections and 15 Academic Research Centres jointly collaborating for scientific research on public administration. Key member countries include – India, Japan, China, Germany, Italy, Korea, Saudi Arabia, South Africa, Switzerland, Mexico, Spain, Qatar, Morocco, Indonesia etc. — The IIAS maintains a close working relationship with the United Nations, and participates in the UN's Committee of Experts on Public Administration (CEPA) and the UN Public Administration Network (UNPAN). While the IIAS is not a formally affiliated body of the UN, it actively engages with the UN's work in public administration. — This is the first time in the 100 years history of IIAS that the election to the post of President was held by ballot process and it is the first time that India has secured the historic mandate for the Presidency of the IIAS. Therefore, option (d) is the correct answer. (Source: pib) With reference to Bank of International Settlements (BIS), consider the following statements: 1. It is owned by the European Union and it deals with countries from around the world that together account for about 95% of world GDP. 2. Its head office is in Basel, Switzerland. Which of the above given statements is/are true? 1 only 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Explanation According to BIS website: — Established in 1930, the BIS is owned by 63 central banks, representing countries from around the world that together account for about 95% of world GDP. Its head office is in Basel, Switzerland and it has two representative offices: in Hong Kong SAR and in Mexico City, as well as Innovation Hub Centres around the world. Hence, statement 1 is not correct and statement 2 is correct. Therefore, option (b) is the correct answer. Daily Subject-wise quiz — History, Culture, and Social Issues (Week 113) Daily subject-wise quiz — Polity and Governance (Week 113) Daily subject-wise quiz — Science and Technology (Week 113) Daily subject-wise quiz — Economy (Week 113) Daily subject-wise quiz — Environment and Geography (Week 113) Daily subject-wise quiz – International Relations (Week 112) Subscribe to our UPSC newsletter and stay updated with the news cues from the past week. Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X. Manas Srivastava is currently working as Senior Copy Editor with The Indian Express (digital) and leads a unique initiative of IE - UPSC Essentials. He majorly writes on UPSC, other competitive exams and education-related projects. In the past, Manas has represented India at the G-20 Youth Summit in Mexico. He is a former member of the Youth Council, GOI. A two-time topper/gold medallist in History (both in graduation and post-graduation) from Delhi University, he has mentored and taught UPSC aspirants for more than four years. His diverse role in The Indian Express consists of writing, editing, anchoring/ hosting, interviewing experts, and curating and simplifying news for the benefit of students. He hosts the YouTube talk show called 'Art and Culture with Devdutt Pattanaik' and a LIVE series on Instagram and YouTube called 'You Ask We Answer'.His talks on 'How to read a newspaper' focus on newspaper reading as an essential habit for students. His articles and videos aim at finding solutions to the general queries of students and hence he believes in being students' editor, preparing them not just for any exam but helping them to become informed citizens. This is where he makes his teaching profession meet journalism. He is also the editor of UPSC Essentials' monthly magazine for the aspirants. He is a recipient of the Dip Chand Memorial Award, the Lala Ram Mohan Prize and Prof. Papiya Ghosh Memorial Prize for academic excellence. He was also awarded the University's Post-Graduate Scholarship for pursuing M.A. in History where he chose to specialise in Ancient India due to his keen interest in Archaeology. He has also successfully completed a Certificate course on Women's Studies by the Women's Studies Development Centre, DU. As a part of N.S.S in the past, Manas has worked with national and international organisations and has shown keen interest and active participation in Social Service. He has led and been a part of projects involving areas such as gender sensitisation, persons with disability, helping slum dwellers, environment, adopting our heritage programme. He has also presented a case study on 'Psychological stress among students' at ICSQCC- Sri Lanka. As a compere for seminars and other events he likes to keep his orating hobby alive. His interests also lie in International Relations, Governance, Social issues, Essays and poetry. ... Read More

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