Description: Canadian prime minister, Mark Carney, stated that Canada would not make any concessions to the US in the upcoming trade negotiations that endanger the country’s economic interests and stable standing on international markets. Carney’s statements arrive ahead of the expected revision of the USMCA trade agreement between the US, Canada and Mexico in Jul and after the SCOTUS declared Trump’s tariffs unconstitutional. Dominic Le Blanc, Canada’s trade minister, stated that although there were many points of confliction, Canada was still willing to compromise and resolve some of the major sticking points with the US. Steel, aluminum, automotive imports and exports, dairy products and high – tech taxes remain the sticking points between the two countries as the revision of the USMCA agreement is set for Jul. President Trump imposed 35% tariffs on Canada under the pretext that Canada failed to manage its immigration policy and mismanaged border security, allowing fentanyl into the US.
Impact: Canada is likely to position itself in a favorable situation regarding bilateral trade with the US due to US foreign policy overtures and considering the SCOTUS’ decision to declare Trump’s tariffs unconstitutional. The fate of the USMCA although still uncertain is likely expected to be resolved, however, Canada will more likely decrease trade concessions to the US and punish its long-time ally for its conditional and assertive foreign trade policies. Bilateral trade disputes are unlikely to be resolved by Jul, when the USMCA revision is scheduled, however, Canada still enjoys a largely advantageous position where it can condition the US on major trade points such as steel and aluminum imports, dairy products and taxes for high – tech companies.