The partial relief of steel tariffs is the modest expectation of the Canadian delegation that is directed to the White House for Tuesday’s meeting between Prime Minister Mark Carney and the president of the United States, Donald Trump.
According to three Canadian sources who speak with CBC News and Radio-Canadá, the hope is that any type of steel rates relief creates an frame or an example of how other rates already imposed on Canada could also be reduced.
CBC News and Radio-Canadá are not naming the sources, since they are not authorized to speak publicly about sensitive matters.
Two of the sources told Radio-Canadá that Trump extended the invitation to Carney. It began with an informal verbal invitation, when the leaders gathered in New York City outside the UN General Assembly in September. The monitoring conversations between the Canadian and American teams formalized the date on Tuesday.
The sources also see this moment as an opportunity for Carney to improve their relationship with Trump after a tumultuous summer. The approved commercial terms without new agreements have been imposed tariffs on Canada, and there have been difficult times in the relationship, including Trump’s indignation for the digital services tax proposed by Canada.
While all sources characterize the ongoing commercial conversations between Canada and the United States as positive, there is still a nervousness that comes with the events related to Trump, given how unpredictable the president had proven to be.
In general, an event of leader to this nature’s leader would include the announcement of agreements or plans completed.
The sources that talk to CBC News and Radio-Canadá are cautious when they discuss the objectives, given Trump’s unpredictable decision making. The sources feared establishing expectations, just to see an unexpected reversal.
The United States has imposed a wide range of tariffs to Canada, which leads to the loss of employment, economic uncertainty and general financial pain. At the same time, Trump has also applied a talent mosaic, relieving some pinch points.
Dominic Leblanc, Minister Responsible for the United Canadá-United States trade, tells a Senate Committee that conversations continue with the United States sectoral tariffs on Canadian goods and that there have been no suggestions for these discussions to have been bent in the next review of CUSMA.
There are no exceptions for steel and Canadian aluminum rates, which are currently 50 percent. And although no world leader has successfully negotiated a way out of these specific rates, rates are lower for certain countries that reached broad trade agreements with the United States, including the United Kingdom
No one with which CBC News and Radio Canada talk expect a broad trade agreement to be announced, but there is hope that the movement in steel rates can pave the way for future agreements to reduce additional tariffs too.
Relationship construction
Carney and Trump have found face to face at least three times since the Canadian prime minister was chosen last spring.
While Trump’s tone to Canada certainly seems to be more positive than during the last months of Prime Minister Justin Trudeau in office, there are challenges.
After progressing in the commercial conversations outside the G7 Summit in Kananaskis, Alta., In June, Carney announced that both parties had established the objective of reaching a new Canadian safety and trade agreement united within 30 days.
“I really want to continue this work at this summit and in the coming weeks,” said Carney at that time.
More than a week later, Trump abruptly announced his intention to stop the conversations, angry at the digital services tax proposed by Canada, which would have an impact on US technology companies.
Trump lashed out at social networks and in front of journalists during an Oval office event. The tensions began to relieve when Canada left the tax and the conversations resumed. Although the hope of a deal began to fade quickly.
The original 30 -day deadline was extended by Trump, who later threatened to increase tariffs unless an agreement was reached before August 1.
Once again, the conversations failed to achieve a breakthrough, and border security and fantasy -related rates increased from 25 to 35 percent. While there are exemptions for goods that comply with Cusma, Mexico, which is also a member of the trilateral trade agreement, it was saved from the increase.
Since then, Canada has backed up against the products of US products, partly because it expects the White House to see movement as an act of good will, so that conversations progress.
The president of the United States, Donald Trump, said Tuesday that he said again to an unidentified Canadian official that the country should consider joining the United States as state 51, while in an event in Virginia he spoke with senior military officials.
In addition to commercial difficulties, Trump also continues to make the case that Canada would be better as state 51.
Canadian officials expected that type of rhetoric had stopped after Trudeau left office, given Trump’s personal animosity to the previous prime minister.
While soaps are not so frequent, he made them during an interview this summer in Fox News, and during a discharge speech for US military leaders last week.
In this difficult time, although there is hope of progress by Canadian officials, there is fear of the unknown with Trump, fear of worsening things.
