Canadian Prime Minister Mark Carney confirmed that negotiations are underway between Canada and the United States to address issues in the sectors affected by definitions, after a “very constructive” conversation with President Donald Trump on Monday evening, according to Bloomberg. Additional meetings are held in Washington to involve officials, including the best civilian employee in Canada Michael Sabia.
Also read: Canada enhances trade relations with Mexico amid the threats of customs tariffs
Carney pointed out that the agreements are expected in some strategic sectors, specifically the name of cars, steel and aluminum, which was targeted by the American customs tariff. However, he has warned that fast accuracy is not likely, saying: “Do not expect immediate white smoke in one of these strategic sectors.” The two calls between Carney and Trump have not been revealed by any of the fair ones.
Canada is increasingly urgent by exposure to industries targeted by American protectionist policies. The data from the Indexbox platform highlights the depth of this integration: more than 90 % of iron, steel and aluminum exports in Canada dedicated to the United States. This makes the sectors completely vulnerable to tariffs by 50 % on foreign steel and aluminum imposed by the Trump administration. President Trump raised some customs tariffs on Canada to 35 % of 25 % on August 1, although he kept an exception to a wide range of products traded under the United States, Mexico and Cananga agreement.
While Canada initially responded by 25 % anti -minerals, it removed a set of other reprisals in August as it seeks an agreement. Dual effect. American car makers also suffered from definitions, which led to protests from Detroit executives and subsequent exemptions for some of the car parts made in North America.
Several definitions face legal challenges after a US court announced that it is illegal on August 29, although it is still valid as the administration appeals to the Supreme Court. Separately, Carney pointed out that the government is also seeking to solve commercial frictions with China, which imposed a tariff on Canadian agricultural goods such as canola and pork after Canada imposed duties on Chinese electric cars, steel and aluminum.
Source: Indexbox Market Intelligence
