The White House has continued to repeat on Thursday that dozens of countries, including Canada, would be struck by an increase in prices this morning, failing to conclude an agreement with Trump. And uncertainty persisted for us late last night.
A few hours before the deadline, negotiations seemed to be dead for Canada. President Donald Trump lets know that Mark Carney had tried to speak to him earlier during the day, but that he did not respond to the Prime Minister.
“We haven’t talked to Canada today,” he said.
It was the frenzy on Thursday when the dozens of countries without understanding all tried to reach the White House to avoid rising prices. The White House spokeswoman said that they will have news before midnight [ce matin]And that the president would sign decrees to apply the new prices in the evening. Around 7:30 p.m., Trump had signed nothing and was stingy with details.
The US Secretary of Commerce Howard Lutnick said in the afternoon that the increase in customs duties against Canada was still on the table.
Donald Trump said in the morning that the recognition of the Palestinian state by Canada, as envisaged by Mark Carney, “makes the prospect of an agreement very difficult. The American president was delighted by saying that he had “not liked” the decision, but that she does not threaten to break the discussions that are going on.
The Canadian team led by Minister Dominic Leblanc and Ambassador Kirsten Hillman was still in Washington on Thursday to try to snatch a deal.
A negligible impact
All countries have failed to agree with Washington will see their customs duties increase. The White House has already announced agreements with the United Kingdom, the European Union, the Philippines, Indonesia, Vietnam, Japan and with South Korea.
During this time, even if the president had promised on his social network that the deadline “is firm and will not be extended”, Mexico, it has obtained an extension of 90 days.
Without an agreement, that would mean for Canada that 25 % prices on imports that do not comply with the Canada-UNITE-Mexico (ACEUM) free trade agreement will increase to his threats. In addition to the sectoral prices already in place.
Should we worry about it? Several experts believe not.
In fact, “if it continues [sans entente]we keep the status quo, which is not too unfavorable. It could be worse if Canada rushes [pour accepter un mauvais deal]”, Explains in an interview Rambod Behboodi, a lawyer specializing in international trade in the BLG office.
In the current state of things, prices of 35 % would not apply to approximately 5 % and 10 % of Canadian exports due to the ACEUM, which exempts a large portion of our products from Trump measures.
The former Prime Minister of Quebec, Jean Charest, believes that the uncertainty caused by the lack of clarity is in itself worse than the current state of customs duties.
“Where there is an issue for Canada, these are challenges on special subjects such as steel, aluminum, timber, because the effects are very important on our economy, and at the same time very negative on the American economy,” he added.
Because metal prices hurt American industry, negotiations could lead to a reduction in these. This is a scenario on which Washington wants to “work” with Canada, according to the Treasury Secretary Scott Bessent.