President Donald Trump and the president of the European Commission Ursula von der Leyen announced on Sunday a agreement which fixes a customs right of 15% on most of the goods exchanged between the two economies. This is the last of a series of agreements signed by the United States with its allies, notably Japan, the United Kingdom and Vietnam.
This text is a translation of an article by CTV News.
Canada, on the other hand, remains under the threat of customs duties of 35% on its exports if no agreement is concluded before the deadline set by Mr. Trump on August 1.
The country is already subject to American customs duties on steel, aluminum and cars. New customs duties on copper should come into force soon.
The former White House official, Larry Haas, believes that Ottawa has reasons to worry.
“The tone between the United States and Canada is much more negative than the one that seems to reign between the United States and the EU,” Haas said in an interview on Sunday to CTV News Channel. “I think the two countries … prepare for the high possibility that customs duties be imposed.”
Mr. Haas added that the deadline could still change, depending on economic signals.
“Trump has already returned to other dates of customs duties,” he added. “If we approach August 1 and these customs duties are still topical, and the stock market suddenly becomes unstable, I could imagine a new extension.”
Canada has taken measures to respond to American pressure, in particular by strengthening border controls and canceling a digital services tax.
Mr. Haas considers, however, that the Canadian government is in a difficult situation to negotiate.
“President Trump respects strength, not weakness,” he said. “Canada must clearly understand in the United States that it will not accept any agreement.”
Haas stressed that customs duties are not a “formula for long -term economic growth”, but that “neither Canadian officials nor anyone else will be able to dissuade President Trump from his penchant for customs duties”.
