WASHINGTON(National Times)- Fresh US tariffs are due to take effect on a range of Canadian goods after midnight Tuesday, as Ottawa seeks a deal to avert President Donald Trump\u2019s planned 50 per cent duties.<\/p>\n\n\n\n
Trump signed orders for the new wave of tariffs last month, with the White House alleging \u201cdiscriminatory treatment\u201d by the US neighbour against American alcohol, automobile and dairy products.<\/p>\n\n\n\n
The duties are set to take effect on Wednesday, covering products such as wine, hockey sticks and cement.<\/p>\n\n\n\n
Overall, they target around 5.5 per cent of Canada\u2019s exports to the United States, worth about $20 billion, Oxford Economics estimates.<\/p>\n\n\n\n
While this only poses a \u201cmodest\u201d negative risk to Canada\u2019s economy, Oxford Economics said in a recent report that the duties would \u201caffect central Canada\u2019s manufacturing sector much more severely\u201d. Negotiations betw\u00ade\u00ad\u00aden both countries are going down to the wire.<\/p>\n\n\n\n
Canadian Prime Minister Mark Carney spoke on the phone with Trump on Monday afternoon, CTV News reported on Tuesday.<\/p>\n\n\n\n
Carney had said on Monday that talks to avert the duties were at an \u201cintense and delicate\u201d stage.<\/p>\n\n\n\n
Canadian negotiators have been in Washington to push for a deal to avoid the new tariffs and also secure relief on Trump\u2019s sector-specific duties \u2014 which have battered Canada\u2019s auto, steel, lumber and aluminium industries.<\/p>\n\n\n\n
Ottawa has reportedly offered concessions such as pressuring provinces to put US alcohol and wine back on their shelves, Canadian media reported. But it remains unclear if a deal is imminent.<\/p>\n\n\n\n
The US Trade Representative\u2019s office did not respond to queries on the matter.<\/p>\n\n\n\n
Political concerns<\/p>\n\n\n\n
\u201cIt\u2019s not unusual for a trade negotiation to go right up to the deadline,\u201d former US commerce official Christopher Padilla said.<\/p>\n\n\n\n
He said he expects that the Trump administration threatened new tariffs to try and win early concessions from Canada as the countries negotiate over renewing the US-Mexico-Canada free trade agreement (USMCA).<\/p>\n\n\n\n
But even if officials reached a pact that was acceptable to both sides on the trade front, this might be rejected by Trump, who could seek to penalise Canada over other political concerns, he said.<\/p>\n\n\n\n
\u201cThe relationship with Canada has been challenging from the beginning,\u201d he said.<\/p>\n\n\n\n
Padilla warned that Trump also has \u201ca history of lashing out against allies when he is frustrated on other fronts,\u201d such as when he is not getting what he wants from parties like Iran, China or Russia.<\/p>\n\n\n\n
Oxford Economics anticipates that manufacturers who stand to be most impacted include those in the cement, paper, printing, wood, clothing and electronics equipment sectors.<\/p>\n\n\n\n
With the US Supreme Court striking down many of Trump\u2019s global tariffs earlier this year, the president tapped an untested legal provision for the new duties targeting Canada.<\/p>\n\n\n\n
These duties will not apply to energy, potash or goods already facing sector-specific tariffs, but they are set to hit products covered by the USMCA.<\/p>\n\n\n\n
Trump\u2019s trade envoy Jamieson Greer said the tariffs aimed to \u201chold Canada accountable\u201d for its retaliation.<\/p>\n\n\n\n
Provinces have taken US alcohol products off their shelves, he said, and \u201cgiven better market access to dairy products from the European Union\u201d among other actions, Greer said in July.<\/p>\n","protected":false},"excerpt":{"rendered":"
WASHINGTON(National Times)- Fresh US tariffs are due to take effect on a range of Canadian goods after midnight Tuesday, as Ottawa seeks a deal to avert President Donald Trump\u2019s planned 50 per cent duties. Trump signed orders for the new wave of tariffs last month, with the White House alleging \u201cdiscriminatory treatment\u201d by the US neighbour against […]<\/p>\n","protected":false},"author":2,"featured_media":131507,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-131506","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international","entry"],"yoast_head":"\n