As trade tensions escalate and steep tariffs threaten Canadian industries, Prime Minister Mark Carney is heading back to Washington for talks with President Trump in search of relief. Carney is scheduled to meet with Trump at the White House on Tuesday to resume discussions, marking his second such trip since taking office, the Canadian Press reports. The Trump administration has imposed tariffs on steel, aluminum, automobiles, and copper, placing significant pressure on Canadian industries. Unemployment reached 7.1% in August, the highest point in more than nine years, excluding the pandemic period, per CNN.
Despite earlier hopes for a broader trade deal by Trump's August deadline, no agreement was reached, and tariffs on Canadian imports were increased to 35%. Goods that comply with the Canada-US-Mexico Agreement are exempt from these duties, a point Carney has highlighted as beneficial compared to other countries. The prime minister has made concessions, including scrapping a tax on US technology companies that prompted Trump to suspend trade talks, per the New York Times.
The Trump administration plans to raise tariffs on lumber later in the month. Canadian officials are focusing on achieving sector-specific tariff reductions ahead of a planned CUSMA review next year, per the Canadian Press. American officials, including Treasury Secretary Scott Bessent, have suggested there is room to negotiate on certain tariffs, particularly aluminum. The US continues to rely on Canadian aluminum imports due to an insufficient domestic supply. However, Trump has reaffirmed his support for existing tariffs on automobiles and steel and has made statements minimizing the importance of Canadian trade to the US.
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