"Even opponents are warning Carney not to follow in the footsteps of other G7 countries"

According to China Central Television, US President Trump has signed an executive order to raise tariffs on Canada from 25% to 35%, effective August 1.

Canadian Prime Minister Trudeau responded by expressing disappointment with the US decision. Some business groups and even his political opponents believe that Canada should not yield to Trump.

Foreign media reports indicate that unlike Mexico, which received a 90-day tariff exemption, Canada has been singled out to face more pressure.

Lori Turnbull, a political scientist at Dalhousie University in Halifax, Nova Scotia, Canada, said that Canada seems to be targeted. "When I see him (Trump) reaching agreements with Japan and the EU, I don't think this is good news for Canada, nor does it indicate that Trump is 'willing to reconcile,' because he has categorized Canada as another type," she said.

Prime Minister Trudeau, who was previously the head of the Bank of Canada, won the election in April with the image of being the most suitable to handle US-Canada relations. On August 1, he expressed "disappointment" with the US decision but pledged to work on enhancing Canada's economic resilience, diversifying export markets, and gradually changing its over-reliance on the American market. Currently, over three-quarters of Canada's exports go to the US market.

The report points out that for this new prime minister enjoying a honeymoon period, repairing the strained relationship with major trade partners is the top priority. It remains unclear whether he will pay a political price for failing to reach an agreement or gain some breathing room. Some business groups and even Trudeau's political opponents have stated that it is better not to reach an agreement than to accept a bad one, and Canada should stand firm rather than accept unfair agreements like other G7 allies.

Pierre Poilievre, leader of the Conservative Party of Canada, criticized these tariffs as "unreasonable." He posted on the social platform "X" that Trudeau should hold his ground, saying "he should only accept an agreement that cancels all American tariffs on Canada." The Canadian Chamber of Commerce stated that the prime minister's approach of prioritizing a strong, future-oriented agreement over a hasty one is correct.

"Canada takes the US concerns seriously, and we are working to alleviate or resolve any real areas of disagreement, but we do not want to accept just any agreement for a deadline issued in a copied-and-pasted letter on a social platform," said Matthew Holmes, Executive Vice President and Director of Public Policy at the Canadian Chamber of Commerce.

Since Trump returned to the White House and broke the friendly relationship between the US and Canada with punitive tariffs and threats of making Canada the 51st state, Canadian officials have tried various strategies to deal with this unpredictable president.

The US has imposed 25% tariffs on Canadian cars, 50% on steel and aluminum, and 35% on imports that do not meet the requirements of the US-Mexico-Canada Agreement (USMCA) signed during Trump's first term. The US market has long relied on Canadian softwood, with about 80% of imported lumber coming from Canada. Last month, the US also increased tariffs on Canadian softwood lumber.

A piece of good news for Canada is that most Canadian import goods qualify for preferential tariff treatment under the USMCA, and are currently not affected by the latest tariff measures. Data shows that in May this year, nearly 60% of goods imported by the US from Canada were exempt, higher than 34% in January.

Economists say that over 90% of Canadian exports could qualify for trade under the USMCA, but some small and medium-sized enterprises previously chose not to apply because their goods entered the US almost duty-free. Now, due to Trump's tariff policies, more companies are applying for qualification under the agreement.

The Bank of Canada stated that the actual tariff rate on Canadian exports to the US is estimated at 5%, lower than the rate applied to most other countries.

However, tariffs and uncertainty over future policies still put pressure on the Canadian economy, with specific industries facing severe impacts. The Bank of Canada said that the drop in exports by 25% due to Trump's tariffs has slowed the second-quarter economic growth. Unemployment rates have risen in sectors dependent on trade with the US, and trade uncertainty has also suppressed household spending and business investment.

Trudeau has been seeking an agreement to eliminate tariffs, but he recently stated that there is no indication that an agreement with the US would completely remove tariffs. He also hinted that negotiations may extend beyond the deadline set by Trump.

Trump's tariffs and threats to "absorb Canada with economic power" have angered Canadians. They have removed American alcohol from shelves and boycotted American travel.

Months-long boycotts have severely hit US regions that rely on Canadian tourists. US officials said this has made Trump very angry.

On July 31, the US announced that because Canada failed to cooperate with the US in controlling the flow of fentanyl and other illegal drugs into the US, and instead took retaliatory measures against the US, the US believes it is necessary to impose additional tariffs on Canadian goods.

Data from the US Customs and Border Protection show that less than 0.2% of fentanyl seized by US border patrol along the land border in fiscal year 2024 came from the northern border. Even so, Canada announced a $9 billion border plan last December and appointed a fentanyl officer this year in response to US concerns.

"Using fentanyl as an excuse is more absurd than the decision to increase tariffs," said Dan Kelly, chair of the Canadian Independent Business Association, sarcastically.

On July 31, after Trudeau announced the conditional recognition of the Palestinian state, Trump immediately threatened on social media that the decision would make it harder for Canada to reach a trade agreement with the US, but less than 24 hours later, he said it might not be an insurmountable obstacle.

"That guy says one thing today, and then wakes up tomorrow and changes his mind, turning to something else," Ontario Premier Doug Ford urged Trudeau to retaliate.

Original article: https://www.toutiao.com/article/1839448651961344/

Statement: This article represents the views of the author.