Washington
Cnn
–
Canadian Prime Minister Mark Carney will visit US President Donald Trump at the White House on Tuesday in what could be one of the most controversial meetings between the leaders of neighboring countries for years.
Canada is the second American trading partner and one of its closest allies on many fronts, from national security to trade. But Trump’s aggressive tariff blitz in recent months has undermined this long -standing relationship – and inadvertently contributed to consolidate Carney.
In a breathtaking reprimand to Trump, the Liberal Party of Canada, with Carney and Chef, won the federal elections last week, putting the newly elected government on a collision course with the Trump administration. In a provocative post-electoral speech, Carney said: “We are above the shock of American betrayal, but we should never forget the lessons.”
Canada and the United States have shared free trade for decades, but Trump’s radical rates have changed this symbiotic relationship-and the damage that Trump’s trade war has inflicted on America is also serious.
Commerce secretary Howard Lunick told Fox Business on Monday that an agreement with Canada was possible but would be “very complex”.
Until February, the two countries were bound by the United States-Mexico-Canada free trade agreement, an agreement negotiated by Trump itself during his first mandate. The USMCA, ratified in 2020, replaced the North American free trade agreement of a quarter of a century.
But Trump changed this this year.
In early March, a 25% covered rate on Mexico and Canada briefly entered into force before it was suspended after the leaders of the two countries promised to take more measures to stem the flow of fentanyl and illegal immigration to America. But a 25% price is still in place for goods imported from Mexico and Canada which do not comply with the USMCA.
Trump has also announced 25% prices on all cars, steel and aluminum in recent months, as well as a price on automotive parts.
Canada responded to Trump shares with a 25% rate on US imports of $ 30 billion (or approximately $ 22 billion), plus an additional $ 25% of Canadian dollars (around $ 22 billion) in response to Trump’s metal rates. Canada has also tasted prices on cars imported from the United States.
This trade war has enormous repercussions for the two economies.
Canada accounts For 14% of all exchanges, according to government data. Canada is also the first country to which the United States exports goods – $ 349.4 billion in 2024 – The biggest exports being energy and cars.
Meanwhile, the United States is the main destination of Canada for its exports – more than three -quarters of them – which include opening wood, steel and aluminum. About 30% of flexible wood consumed in the United States is imported, Canada representing more than 80% of these imports.
Trump’s trade war already weighs on American companies of all sizes. The CEO of General Motors, Mary Barra, said in an interview with CNN last week that the prices will cost her business between 4 and $ 5 billion this year.
At the other end of the spectrum, Beth Fynbo Benike, owner of Baby Products Company Busy Baby, told CNN that a goods container to reconstitute his inventory would now cost him nearly $ 230,000 to arrive on American soil.
The latest beige book report of the Federal Reserve, a periodic compilation of responses to the survey in companies across the country, has offered various American companies noting less Canadian tourists – which brings a sure blow.
“Some retailers and hospitality suppliers in northern Washington and South California have reported a material drop in cross -border tourism with Canada and Mexico,” said the report.
Canadians also choose not to buy American manufacturing products, to give up Californian tomatoes for Italian tomatoes, the pepperoni made in Ohio for meats produced in Ontario and Quebec and Coca Cola for sparkling water, sweet with Canadian maple syrup.
“We, as Canadians, are not going out and are not trying to create fights,” a Toronto resident, who heads the online repertoire in Canada told CNN. “It’s an attack on Canada.”
