Canada and the U.S. are targeting Aug. 1 to reach a trade agreement, but acknowledged that may not be likely.BRENDAN SMIALOWSKI/AFP/Getty Images
The continuing tariff saga that began with U.S. President Donald Trump’s inauguration has been chaotic, with the American administration, at different times, promising to impose steeper tariffs, claw them back, then tax even more goods.
On February 20, the U.S. Supreme Court ruled against Mr. Trump’s use of emergency powers to impose tariffs — striking down a key pillar of his protectionist trade agenda. The Supreme Court ruled that the President acted illegally in using one of his emergency economic powers to impose sweeping tariffs on trade partners last year. The sectoral tariffs on steel, aluminum, automobiles and lumber, which are hitting Canadian trade the hardest, aren’t affected by the decision and will remain in place.
Hours after the decision, Mr. Trump said he would impose a new 10-per-cent global tariff, using Section 122 of the Trade Act of 1974. This law lets the President impose tariffs of up to 15 per cent for 150 days before Congress must vote to extend them.
In recent months, Prime Minister Mark Carney has tried to scratch out a trade deal that wouldn’t result in a significant increase to the price of American goods that Canadians buy, but the deadline has been extended multiple times and now appears to be on ice.
Last December, Carney said he does not expect the two countries to negotiate a deal that addresses tariffs on steel, aluminum, autos and other sectors. Instead, he expects these negotiations to become part of an upcoming review of the continental trade agreement, known as USMCA or CUSMA. He reinforced this position in a press conference in January, after being asked whether Ottawa would agree to an external trade policy that’s more aligned with Washington. “We’ll wait until we have the broader discussions with the United States as part of a review, not a renegotiation but a review of” the USMCA, he said.
Numerous trading partners have struck agreements with the U.S. following its imposition of tariffs, including the European Union, Japan, Vietnam, the United Kingdom, Indonesia, the Philippines, Argentina, Australia, Cambodia, Ecuador, El Salvador and Switzerland.
Here’s a look at the current state of tariffs.
With files from Steven Chase, Mark Rendell and Adrian Morrow.