Can Canada dodge Trump's tariffs? Ex-envoy says it's a mixed bag—some yes, some no! ????????
From tariff threats to social media claims that Canadians want to join their southern neighbors, U.S. president-elect Donald Trump has made numerous statements about Canada and Prime Minister Justin Trudeau ahead of his second term. Mackenzie Gray examines the inaccuracies in Trump's comments about the Canada-U.S. relationship.
Canada's former ambassador to the U.S.,Frank McKenna ,is confident that while Ottawa can dodge the worst of Trump's proposed tarrifs,it won't escape completely unscathed.Now the deputy chair at TD Securities ,McKenna believes Trump's 25% tarrif threat is more of a bargaining chip to lower American taxes.Such high tarrifs could lead to inflation and a spike in the dollar,undermining Trump's goals.McKenna suggests a 10% tarrif might be possible in the short term, but 25% is unlikely.
Federal officials and trade groups warn that significant tarrifs would disruptboth U.S. and Canadian economies,with $3.5 billion in goods crossing the border daily.Despite Trump's jabs at Prime Minister Justin Tradeau, McKenna remains optimistic about reaching an agreement and emphasizes the importance of Canadian officials not amplifying American allegations. If negotiations fail, Canada may have to implement retaliatory tariffs, but there's hope the U.S. will adhere to the United States-Mexico-Canada Agreement. McKenna believes the 25% tarrif would breach the agreement, although Trump's disregard for rules could complicate matters. The upcoming joint review of the agreement in 2026 may also influence the situation.
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