If on the one hand the United States aim to intensify their trade war against Canada, the Ue is ready instead to strengthen trade trade and security with Ottawa.
- United States yesterday, with a series of proclamations, they started a new phase of the trade war with Canada passing from high duties a real prohibitions on certain Canadian imports in response to bans on U.S. alcohol products imposed by several Canadian provinces. The measures announced by the Trump administration include the prohibition on the importation of whey protein, certain rye whiskies and other spirits, malt beer and certain grape wines, non-alcoholic beer, and motorcycles. Trump also extended the application of duties The so-called Section 338, a power that dates back to the Depression-era Smoot-Hawley tariff law and was put to the test for the first time last month, includes certain cheeses, animal hides, motorboats, some aluminum and paper products, golf carts, and mattresses among the products affected by Trump's measures.
The United States Trade Representative, Jamieson Greer, called the latest U.S. measures a “natural consequence of Canada’s continued discriminatory treatment of crucial American exports, ranging from alcoholic beverages to dairy products to motor vehicles.”
The entry into force Import bans on certain Canadian dairy products and alcohol are expected to take effect in three weeks, a senior administration official told reporters. The tariff changes under Section 338, however, will take effect in a week. A White House briefing note specified that the new tariffs they will be added to the duties sector-specific already in forcePreviously, other Section 338 products had been hit with tariffs, including salt, toilet paper, bed sheets, and whiskey and liquor in containers holding more than four liters. Meanwhile, a senior administration official said Trump's threats to increase tariffs on cars Canadians' 50% discount starting January 1 remains in effect. The official also added that they plan to hold discussions with their Canadian counterparts in the coming days.
Canada's "dollar for dollar" response. Trump's war goes beyond trade.
Dominic LeBlanc, the minister responsible for Canada-U.S. trade, said he was in contact with Greer and that Ottawa was evaluating Washington's latest move. "When the United States is ready to engage, our government will work in good faith and constructively to establish a more secure and mutually beneficial trading relationship that fully respects Canadian sovereignty," he said in a social media post.
The US president's actions against Canada have recently extended far beyond tariffs. Talks between the United States and Canada for a trade truce collapsed at the last minute in August, prompting the Trump administration to impose 50% tariffs on billions of dollars worth of Canadian goods. Trump then ordered that the Lake Ontario came renamed Lake America, prompting protests from Canadians and even some US Republican allies. He also threatened to halt sales of the Bombardier jet, Canada-based company and has even raised doubts about the value of the Canadian currency.
The Canadian Prime Minister Mark Carney, after the recent failure of trade negotiations, he promised dollar-for-dollar retaliation. The measures adopted by Canada they might have a impact particularly harmful in states like the Michigan and Ohio, which also host important mid-term elections in November to determine control of the U.S. Congress. The Canadian Chamber of Commerce said yesterday that the United States is "punishing Canada, punishing itself, before the eyes of the whole world" with its latest trade measures.
EU and Canada plan agreement to strengthen trade and security
Meanwhile, the European Union is coming forward and is working with Canada on a new agreement which will range from trade to security, to counterbalance the global power dynamics dominated by United States and ChinaAccording to sources close to the preparations, reported by Bloomberg, the president of the European Commission Ursula von der Leyen, is expected to announce plans during his State of the Union address in Strasbourg, France, the 16 September.
Canadian Prime Minister Mark Carney will attend the speech and the next day will address the European parliamentarians. The Carney government has made strengthening the partnership with the EU a top priority and is actively evaluating all possible options, excluding full membership, a Canadian official said. Discussions focus in particular on "strategic capabilities," such as cooperation on defense, exploration space and research scientificIt's unclear whether new legal instruments will be needed to formalize this partnership, but discussions are ongoing, and the Carney government will consult with Canadian provinces and industries, the official said. The EU and Canada want to get as close as possible within the law, one of the sources said. The two sides have also discussed possible collaboration under the Trans-Pacific Partnership (TPP), a multilateral trade agreement of which Canada is a member. Last year, Canada became the first non-EU country to join the EU's €150 billion military procurement fund.
