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Ottawa Citizen
2 days ago
- Business
- Ottawa Citizen
Donald Trump's tariffs on Canada are making his party anxious ahead of 2026 midterms
WASHINGTON, D.C. — Politicians in conservative states most affected by U.S. tariffs on Canadian goods — and Ottawa's targeted retaliatory tariffs against key sectors in Republican strongholds — are increasingly concerned over the economic fallout from Donald Trump's trade agenda, especially with the 2026 midterm elections looming. Article content Last Friday, Trump imposed a 35 per cent tariff on Canadian goods not compliant with the Canada-US-Mexico Agreement, adding to existing high duties on steel, aluminum, autos, and copper. Though most Canada-U.S. trade remains USMCA-compliant, businesses dealing in affected goods had largely been waiting to see if tariffs would be lifted. Now, those industries must pass increased costs along to U.S. buyers, pushing prices higher on items ranging from groceries and clothing to cars and farm equipment. Article content Article content Combined with last Friday's weak U.S. jobs report, the trade concerns have GOP lawmakers worried about the political and economic impact ahead of the midterms, but only a handful dare to voice their concerns. Article content Article content 'It definitely is indicative of a weakened economy, an economy that's not acting in a robust fashion. I've all along felt like there's a lag between tariffs and actual economic downturn,' Kentucky Sen. Rand Paul, a Republican, told the press this week, adding that retailers have told him they think they will have to raise prices this fall. Article content Kansas Sen. Jerry Moran also warned this week of rising costs for consumers and businesses. While noting that tariffs can be good for solving trade barriers, he said 'there's no question tariffs are a tax on the cost of a product.' He also noted that trade uncertainty is bad for business because it 'delays decisions to expand, to hire, to spend money.' Article content Article content Earlier this year, Mitch McConnell, a Republican senator from Kentucky, also railed against Trump's tariffs. Article content 'With so much at stake globally, the last thing we need is to pick fights with the very friends with whom we should be working with to protect against China's predatory and unfair trade practices,' he said in a statement. He and Sen. Paul, along with Sen. Susan Collins, of Maine, and Sen. Lisa Murkowski, of Alaska, also voted in favour of a resolution to undo Trump's 25 per cent tariffs back in the spring, warning of impacts on their state economies and border communities. The Senate narrowly approved the joint resolution, 51-48, but it then died in the House. Article content Inu Manak, a fellow for trade policy at the Council on Foreign Relations, says inflated prices from the tariffs will be felt before the end of the year — and for some items, like clothing, as early as next month with back-to-school shopping. And while Republicans know these impacts are looming, they're not taking steps to mitigate the tariffs.
Vancouver Sun
2 days ago
- Business
- Vancouver Sun
Donald Trump's tariffs on Canada are making his party anxious ahead of 2026 midterms
WASHINGTON, D.C. — Politicians in conservative states most affected by U.S. tariffs on Canadian goods — and Ottawa's targeted retaliatory tariffs against key sectors in Republican strongholds — are increasingly concerned over the economic fallout from Donald Trump's trade agenda, especially with the 2026 midterm elections looming. Last Friday, Trump imposed a 35 per cent tariff on Canadian goods not compliant with the Canada-US-Mexico Agreement, adding to existing high duties on steel, aluminum, autos, and copper. Though most Canada-U.S. trade remains USMCA-compliant, businesses dealing in affected goods had largely been waiting to see if tariffs would be lifted. Now, those industries must pass increased costs along to U.S. buyers, pushing prices higher on items ranging from groceries and clothing to cars and farm equipment. Combined with last Friday's weak U.S. jobs report, the trade concerns have GOP lawmakers worried about the political and economic impact ahead of the midterms, but only a handful dare to voice their concerns. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. 'It definitely is indicative of a weakened economy, an economy that's not acting in a robust fashion. I've all along felt like there's a lag between tariffs and actual economic downturn,' Kentucky Sen. Rand Paul, a Republican, told the press this week, adding that retailers have told him they think they will have to raise prices this fall. Kansas Sen. Jerry Moran also warned this week of rising costs for consumers and businesses. While noting that tariffs can be good for solving trade barriers, he said 'there's no question tariffs are a tax on the cost of a product.' He also noted that trade uncertainty is bad for business because it 'delays decisions to expand, to hire, to spend money.' Earlier this year, Mitch McConnell, a Republican senator from Kentucky, also railed against Trump's tariffs. 'With so much at stake globally, the last thing we need is to pick fights with the very friends with whom we should be working with to protect against China's predatory and unfair trade practices,' he said in a statement. He and Sen. Paul, along with Sen. Susan Collins, of Maine, and Sen. Lisa Murkowski, of Alaska, also voted in favour of a resolution to undo Trump's 25 per cent tariffs back in the spring, warning of impacts on their state economies and border communities. The Senate narrowly approved the joint resolution, 51-48, but it then died in the House. Inu Manak, a fellow for trade policy at the Council on Foreign Relations, says inflated prices from the tariffs will be felt before the end of the year — and for some items, like clothing, as early as next month with back-to-school shopping. And while Republicans know these impacts are looming, they're not taking steps to mitigate the tariffs. 'What we are starting to see,' she says, 'is that when they go back home to their constituencies on the weekends, they're getting a lot of questions and pushback on the tariffs themselves.' Earlier this year, questions from voters during town hall meetings related mostly to the DOGE firings, Manak explains, but now tariffs are top of mind. Apart from the five senators mentioned above, however, these local chats are not being amplified by the majority of Republican lawmakers back in Washington. 'Republicans are in a weird position right now because, on the one hand, they're trying to sell the president's signature economic policy, the 'Big Beautiful Bill,' which is huge tax cuts,' Manak says. Tariff revenue is meant to help pay for those tax cuts, 'so they're having to sell this bill and also defend the tariffs, neither of which are popular right now.' Polling has shown that the majority of Americans — and the vast majority of Democrats — oppose the tariffs. So why are Republican lawmakers muted on an issue that's so concerning to their constituents? Clark Packard, a research fellow in the Cato Institute's Herbert A. Stiefel Center for Trade Policy Studies, points to the 'shadow of Trumpism' and says few will risk drawing the ire of the president and his allies. Manak agrees. She says it's unlikely that more Republican voices will push back on tariffs before the midterms. 'I just think that they're not willing to oppose the president, and they're very concerned about being primaried' and losing seats if Trump works against them, she says. Privately, however, they are saying plenty. Manak says she has spoken with Republicans who are concerned about the economic impact on their states and on certain industries being affected. 'But they can't really do anything at this point,' she adds. Many lawmakers likely hope they won't have to wait for the midterms for a reckoning. Last week, the Washington, D.C.-based Federal Circuit Court of Appeals heard oral arguments in challenges to Trump's use of IEEPA, and a decision could come as early as this month over the legality of the tariffs. Packard suggests that many Republicans are 'quietly hoping that a court will strike down the tariffs.' A source close to the U.S.-Canada trade negotiations, who spoke on condition of anonymity, said they've had conversations with those in Congress who are concerned by the tariffs. They are 'literally sitting back and hoping that the courts do their job for them so they don't have to deal with this,' the source said. Barring a legal solution, it will be left to the voters to weigh in on Trump's tariffs. At the moment, economists are predicting slower growth, but few are talking about a recession in the coming year, despite the lower-than-expected employment report. But 'if that continues, if inflation ticks up, which it looks like it's potentially starting to do, then I think voters will punish the incumbents,' says Manak. Today, Republicans hold the majority in the U.S. Senate, with 53 of the 100 seats, and a slim majority in the House with 219 of 435 seats. Twenty-two Senate seats are up for grabs next year, and while the Democrats only need to gain four seats to take control, most of the races are in states that went for Trump in 2024. As for the House, some experts say the Dems are likely to flip the chamber. 'Polling suggests that people aren't so optimistic,' says Manak. 'If that continues, I do think there's a very solid chance that there will be some seat changes — barring some gerrymandering,' particularly in Texas. Drawing a parallel to Trump's first term, Manak points out that the president's first midterms saw the House flip, 'because of a lot of targeted retaliations, from China in particular.' The president could still turn things around, says Packard. 'If [Trump] can get some deals done, that's a positive for him, giving certainty to the economy.' He suggests that this would need to include a baseline tariff lower than 15 per cent. But Packard mostly sees trouble ahead for the Republicans. 'The president himself is deeply unpopular with the American public,' he says. If his agenda and the tariffs stay in place as they are now, 'the president will become less popular, the policy will become less popular, and Republicans therefore will become less popular and there will be substantial pushback.' 'I can absolutely see the House flipping,' he adds. National Post Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our newsletters here .
Calgary Herald
2 days ago
- Business
- Calgary Herald
Donald Trump's tariffs on Canada are making his party anxious ahead of 2026 midterms
WASHINGTON, D.C. — Politicians in conservative states most affected by U.S. tariffs on Canadian goods — and Ottawa's targeted retaliatory tariffs against key sectors in Republican strongholds — are increasingly concerned over the economic fallout from Donald Trump's trade agenda, especially with the 2026 midterm elections looming. Article content Last Friday, Trump imposed a 35 per cent tariff on Canadian goods not compliant with the Canada-US-Mexico Agreement, adding to existing high duties on steel, aluminum, autos, and copper. Though most Canada-U.S. trade remains USMCA-compliant, businesses dealing in affected goods had largely been waiting to see if tariffs would be lifted. Now, those industries must pass increased costs along to U.S. buyers, pushing prices higher on items ranging from groceries and clothing to cars and farm equipment. Article content Article content Combined with last Friday's weak U.S. jobs report, the trade concerns have GOP lawmakers worried about the political and economic impact ahead of the midterms, but only a handful dare to voice their concerns. Article content Article content 'It definitely is indicative of a weakened economy, an economy that's not acting in a robust fashion. I've all along felt like there's a lag between tariffs and actual economic downturn,' Kentucky Sen. Rand Paul, a Republican, told the press this week, adding that retailers have told him they think they will have to raise prices this fall. Article content Kansas Sen. Jerry Moran also warned this week of rising costs for consumers and businesses. While noting that tariffs can be good for solving trade barriers, he said 'there's no question tariffs are a tax on the cost of a product.' He also noted that trade uncertainty is bad for business because it 'delays decisions to expand, to hire, to spend money.' Article content Article content Earlier this year, Mitch McConnell, a Republican senator from Kentucky, also railed against Trump's tariffs. Article content 'With so much at stake globally, the last thing we need is to pick fights with the very friends with whom we should be working with to protect against China's predatory and unfair trade practices,' he said in a statement. He and Sen. Paul, along with Sen. Susan Collins, of Maine, and Sen. Lisa Murkowski, of Alaska, also voted in favour of a resolution to undo Trump's 25 per cent tariffs back in the spring, warning of impacts on their state economies and border communities. The Senate narrowly approved the joint resolution, 51-48, but it then died in the House. Article content Inu Manak, a fellow for trade policy at the Council on Foreign Relations, says inflated prices from the tariffs will be felt before the end of the year — and for some items, like clothing, as early as next month with back-to-school shopping. And while Republicans know these impacts are looming, they're not taking steps to mitigate the tariffs.
Edmonton Journal
2 days ago
- Business
- Edmonton Journal
Donald Trump's tariffs on Canada are making his party anxious ahead of 2026 midterms
WASHINGTON, D.C. — Politicians in conservative states most affected by U.S. tariffs on Canadian goods — and Ottawa's targeted retaliatory tariffs against key sectors in Republican strongholds — are increasingly concerned over the economic fallout from Donald Trump's trade agenda, especially with the 2026 midterm elections looming. Article content Last Friday, Trump imposed a 35 per cent tariff on Canadian goods not compliant with the Canada-US-Mexico Agreement, adding to existing high duties on steel, aluminum, autos, and copper. Though most Canada-U.S. trade remains USMCA-compliant, businesses dealing in affected goods had largely been waiting to see if tariffs would be lifted. Now, those industries must pass increased costs along to U.S. buyers, pushing prices higher on items ranging from groceries and clothing to cars and farm equipment. Article content Article content Combined with last Friday's weak U.S. jobs report, the trade concerns have GOP lawmakers worried about the political and economic impact ahead of the midterms, but only a handful dare to voice their concerns. Article content Article content 'It definitely is indicative of a weakened economy, an economy that's not acting in a robust fashion. I've all along felt like there's a lag between tariffs and actual economic downturn,' Kentucky Sen. Rand Paul, a Republican, told the press this week, adding that retailers have told him they think they will have to raise prices this fall. Article content Kansas Sen. Jerry Moran also warned this week of rising costs for consumers and businesses. While noting that tariffs can be good for solving trade barriers, he said 'there's no question tariffs are a tax on the cost of a product.' He also noted that trade uncertainty is bad for business because it 'delays decisions to expand, to hire, to spend money.' Article content Article content Earlier this year, Mitch McConnell, a Republican senator from Kentucky, also railed against Trump's tariffs. Article content 'With so much at stake globally, the last thing we need is to pick fights with the very friends with whom we should be working with to protect against China's predatory and unfair trade practices,' he said in a statement. He and Sen. Paul, along with Sen. Susan Collins, of Maine, and Sen. Lisa Murkowski, of Alaska, also voted in favour of a resolution to undo Trump's 25 per cent tariffs back in the spring, warning of impacts on their state economies and border communities. The Senate narrowly approved the joint resolution, 51-48, but it then died in the House. Article content Inu Manak, a fellow for trade policy at the Council on Foreign Relations, says inflated prices from the tariffs will be felt before the end of the year — and for some items, like clothing, as early as next month with back-to-school shopping. And while Republicans know these impacts are looming, they're not taking steps to mitigate the tariffs.
National Observer
29-07-2025
- Business
- National Observer
Carney says trade talks in 'intense phase' after Trump notches a win with European Union
Prime Minister Mark Carney said Monday that Canada's negotiations with the United States are in an "intense phase" after President Donald Trump achieved a critical agreement with the European Union days away from his tariff deadline. The prime minister's comments come after Trump last week told reporters that Canada wasn't a priority ahead of his Aug. 1 deadline to make trade deals. "There are many aspects to these negotiations," Carney said in P.E.I. "We are engaged in them but the assurance for Canadian business, for Canadians, is we will only sign a deal that's the right deal, that's a good deal for Canada." The EU framework announced Sunday gave Trump a much-needed win as he looks to realign global trade — and it indicates that no nations are likely to get a reprieve from his tariffs. It sets a 15 per cent tariff on most goods, including European automobiles. Trump said 50 per cent tariffs will remain on steel and aluminum. Other details of the deal remain unclear, including its effects on measures the US considers trade irritants, such as Europe's digital services taxes and non-tariff barriers. Trump said the EU had agreed to buy US$750 billion worth of US energy and invest an additional US$600 billion in the United States. The president recently said that countries will have to "buy down" the threatened tariff rate. Baseline tariffs were also a part of trade deal frameworks previously announced for Japan, Vietnam, Indonesia, the Philippines and the United Kingdom. Countries around the world have been watching to see how many trade deals materialize before the deadline, and what can be gleaned from them for their own negotiations with the Trump administration. Christopher Sands, director of Johns Hopkins University's Center for Canadian Studies, said the EU deal builds on Trump's negotiating style — he loses interest, suggests no deal will happen, insults the other side and "then at the 11th hour something comes through." "I know there's been a lot of negativity around a Canada security and economic agreement but it doesn't necessarily mean that we are doomed," Sands said. "It may be that we are close and we have a surprise deal." Trump sent a letter to Carney threatening to impose 35 per cent tariffs if Canada doesn't make a trade deal by Friday. The White House has said those duties would not apply to goods compliant with the Canada-US-Mexico Agreement on trade, better known as CUSMA. Carney and other Canadian officials have been downplaying expectations that a deal will be made by Friday. Most of the goods Canada sends to the US are CUSMA-compliant and won't be affected by the 35 per cent duties. The Canadian economy is still being slammed by Trump's Section 232 tariffs on steel, aluminum and automobiles, and will be hit by copper tariffs the president has said will take effect by the week's end. So far, Trump's trade deals "are really bad omens for Canada," said William Pellerin, a trade lawyer and partner at the firm McMillan LLP. "(It shows) that the tariffs, particularly the sectoral tariffs, are stickier than we would have thought," Pellerin said. "If none of those countries were able to secure a drop in the sectoral tariffs, that is certainly bad news." Those Section 232 duties are a key target for Canadian negotiators and Pellerin said it's unlikely any deal will be struck by Ottawa if they remain at their current levels. While there are similarities between the Canada-US negotiations and those involving Europe, Carney said there are also many differences. While Europe is looking to end its reliance on Russian energy, Carney said Canada is a reliable supplier of energy to the United States. The prime minister said negotiations remain complex but "there is a landing zone that's possible." "But we have to get there," he said. The EU agreement also averts significant retaliatory duties from a major United States customer — meaning that if Canada can't reach a deal with Washington, it would be more isolated if it attempts to retaliate against the US. Canada and China have implemented retaliatory tariffs in response to Trump's trade war but, to allow talks to continue, Ottawa didn't move forward with additional duties. Ontario Premier Doug Ford said Monday he supports a dollar-for-dollar tariff response, particularly to Trump's treatment of Canada's steel and aluminum industry. "I'm confident with Prime Minister Carney, I know he's going to do his very best to get a deal," Ford said. "But I don't trust President Trump." BC Premier David Eby said Canada is in a "different position" than the European Union or Japan, given the deeply integrated nature of North American supply chains. "We are a reliable partner, we are a good partner, but we also won't get kicked around," he said. Sands said Carney's recent move to limit imports of foreign steel into Canada will help shore up the domestic market during the tariff tumult while also avoiding the ire of the Trump administration. The prime minister recognizes you can engage in retaliation, Sands said, but "it doesn't bring you much joy." He said there are other actions, such as import quotas, that would better protect Canadian markets. This report by The Canadian Press was first published July 28, 2025.
