A new trade war has broken out between the United States and Canada. What the media is writing
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- A new trade war has broken out between the United States and Canada. What the media is writing
The United States imposed 50 percent tariffs on Canadian goods after the collapse of trade negotiations between the two countries, although they had previously signaled that a deal was almost agreed. Canadian Prime Minister Mark Carney explained the refusal of dialogue by the sudden conditions imposed by the American side, and hinted at disagreements in the administration of US President Donald Trump. How the media reacts to the trade war in North America is in the Izvestia digest.
The New York Times: What you Need to Know about the US-Canada Trade War
Negotiations between the United States and Canada failed, failing to prevent the imposition of new high duties on Canadian goods, prompting Ottawa to promise dollar-for-dollar retaliatory measures. Canadian Prime Minister Mark Carney said he had suspended negotiations because the American side had made last-minute conditions that were "unfair, uneconomical and called into question the reliability of any deal." Then, in a powerful speech to Canadians, Carney said that Canada was being attacked by US President Donald Trump's tariffs and was "at war" with the United States.
The New York Times
[August 21], just hours before both sides announced the failure of negotiations, Trump stated that, in his opinion, an agreement could be reached. Carney <...> said that American negotiators insisted on canceling Canada's efforts to promote Canadian, including French-language, content on online streaming services; subsidies for industries such as publishing and film production; and even mandatory labeling on packaging in French and English. French is the official language in Canada.
The new duties amount to $20 billion of the $382 billion Americans spent on goods purchased in Canada last year, and cover a wide range of 500 items. The failure of negotiations also means that duties of up to 50%, which Trump imposed last year on the automotive, aluminum and steel industries, remain for Canada. The US president also added 10% duties on softwood lumber, whereas previously duties were 35%.
The Washington Post: The breakdown of relations demonstrates the limitations of Trump's aggressive trade strategy
The shocking failure of the US-Canadian trade talks is the latest sign that Trump's radical approach to reshaping trade relations between the countries may be reaching its limits. In recent days, the president has been trying to use untested legal force to force Canada to make trade concessions. Instead, Carney pulled out of the negotiations, refusing to accept the growing list of U.S. demands. As a result, the United States imposed 50 percent duties on a number of Canadian goods, including hockey sticks and whiskey.
The Washington Post
"This is a serious blow to Trump's trade policy. We are at a tipping point where other countries can monitor developments very closely, as they are also becoming increasingly frustrated with the demands that the United States is making on them in these largely unilateral trade agreements," said Wendy Cutler, a former American trade negotiator and now senior vice president at the Institute for Policy Studies at the Asian societies.
The negotiations with Canada were aimed at preventing the imposition of new 50 percent tariffs, which Trump threatened in July if Carney did not lift the measures imposed in response to the previously imposed US duties. The breakdown that followed exposed tensions in the president's strategy, including questions about the durability of any agreement reached with the U.S. administration. Trump's undiplomatic style, including statements that Canada should give up its sovereignty and become the 51st U.S. state, made it difficult for the Canadian leader to accept the agreement politically. Public opinion in Canada has become sharply anti-American.
Reuters: Affected by Trump's tariffs, Quebec has lost its desire to secede from Canada
When Trump imposed 50 percent tariffs on Canadian steel, a steel mill in the predominantly French-speaking Canadian province of Quebec lost about a third of its orders for bolts and fasteners in less than a week. The owner of the plant, Heico— froze recruitment, closed the plant in the region and laid off several dozen people. These cuts were part of the company's overall layoff program, mainly in Quebec, which saw 140 employees laid off.
Reuters
The plant's problems reflect general concern about the effects of Trump's trade war in Quebec, where provincial elections are due to be held by October 5. But if earlier the economic downturn in the province led to an increase in separatist sentiments, then, according to polls, this time support for Quebec's independence is at its lowest level in decades, amounting to about 30%.
Residents of the region believe that the threat Trump poses to Canada means that the best way to preserve Quebec's unique French culture is to remain part of Canada, at least for now. The abrupt change in the course of US tariff policy has provoked a wave of Canadian patriotism in the province, which regularly threatens to secede and where referendums on this issue have been held twice before.
Politico: Inside the 72 Hours that Derailed the trade agreement
U.S. Trade Representative Jamison Greer walked to a meeting with Canadian officials with a frown on his face. Greer had been in continuous negotiations for more than a week, and both sides were incredibly close to concluding a deal that would break through more than a year of icy diplomatic and economic relations. The deal seemed inevitable, but it fell apart. It failed due to a combination of last-minute demands and political constraints on both sides. American officials accused Canada of making new demands late in the negotiations, including a request for lower tariffs on heavy-duty vehicles, while Canada pointed to the internal struggle of the United States for control over key elements of the deal.
Politico
The result: a sharp escalation of the trade war between two countries with deeply integrated supply chains, which could jeopardize more than $1 trillion in North American trade and, as a result, increase economic pressure ahead of the US congressional elections in November. [On August 22], a 50% duty on Canadian goods worth $20 billion came into force, the Canadians promised to respond in kind, and Mexico, which does business with both countries, could be under attack.
The negotiations revealed disagreements between Greer and U.S. Commerce Secretary Howard Lutnick. Although the White House insists that officials are acting in concert, two people familiar with the negotiations said Lutnik felt that the agreement's framework, developed by Greer's trade office, was "imposed" on his office "hastily," despite the fact that it addresses a number of political issues for which he is responsible. He answers. Lutnik, one of the Trump administration officials who has been most dismissive of Canada and its interests, has spoken directly to Carney several times over the past week via SMS and phone. Carney hinted that disagreements from the American side at the negotiating table influenced his decision to withdraw.
Bloomberg: Canada expects a protracted trade war with the United States
According to sources familiar with the situation, the Carney government sees little chance of resuming negotiations with Trump before the midterm elections. The Canadian leader, who has stated that he will prepare a package of domestic assistance measures to support enterprises affected by US duties, is developing these measures in such a way that, if necessary, they can operate until the end of Trump's term of office.
Bloomberg
Carney's speech [on August 21], which received wide support across the Canadian political spectrum, seems to have strengthened his political position in the face of the risk of protracted conflict. Trump's constant threats against Canada have made him extremely unpopular in that country. In a survey conducted after the breakdown of negotiations, three quarters of Canadians supported Carney's decision to withdraw from the negotiations, despite the fact that many participants in the same survey expressed concern about future economic consequences.
Although the Carney government sees no signs of resuming negotiations in the near future, some sources warn that the situation remains unstable, and the United States does not rule out their resumption. It is unclear exactly what the domestic aid package will include, and it is also unclear how much the tariff war could escalate. The American official said that if Carney imposes his duties, Trump will be given options for further escalation.
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