Canada to retaliate against Trump with tariffs on US autos

“Prime Minister Mark Carney said Canada will impose “carefully calibrated and targeted counter tariffs” on the United States in response to President Donald Trump’s “Liberation Day” tariffs.

Carney said Canada will counter with 25 percent tariffs on all vehicles imported from the United States that are not compliant with the United States-Mexico-Canada Agreement and on the non-Canadian content of USMCA-compliant vehicles from the United States.

But Carney said that unlike Trump’s tariffs, Canada’s countermeasures will not affect auto parts “because we know the benefits of our integrated production system.” All other previously announced Canadian countermeasures to Trump’s previous threats will remain, Carney said.

Carney said Trump’s global reciprocal tariffs have ended 80 years of American global economic leadership that started after World War II.”

https://www.politico.com/news/2025/04/03/canada-auto-tariffs-00269041

For the First Time in 80 Years, the U.S. Denies Mexico’s Request for Water

“For the first time in more than 80 years, the U.S. has denied Mexico’s request for water from the Colorado River, escalating tensions over a water-sharing agreement between the two nations.

The State Department says it denied the request because Mexico hasn’t complied with the 1944 treaty that established the water-sharing system. That agreement requires Mexico to send 1.75 million acre-feet of water from the Rio Grande to the U.S. every five years. In turn, the U.S. must send 1.5 million acre-feet of water to Mexico from the Colorado River each year.

By the end of 2024, Mexico had delivered only a quarter of what it owed for the current five-year period, which ends in October. Mexico has been struggling with severe droughts for several years. In the first quarter of 2024, the country’s agricultural production fell by 6.1 percent, according to a report from the Bank of Mexico. Activity in the north-central regions, which includes the border states of Chihuahua, Coahuila, and Nuevo León, fell by 3.3 percent. The country has sought emergency water deliveries to alleviate the strain on its water systems.”

https://reason.com/2025/03/31/for-the-first-time-in-80-years-the-u-s-denies-mexicos-request-for-water/

As ‘Buy Canadian’ grows, more US companies say retailers turning away their products

“The “Buy Canadian” movement is sending new ripples of concern through the executive offices of U.S.-based consumer companies that banked on selling their products on Canadian retail shelves.”

https://finance.yahoo.com/news/buy-canadian-grows-more-us-100455086.html

Carney says tariffs force new era for Canada-US ties

“Canada’s traditional relationship with the United States is over, Prime Minister Mark Carney said Thursday in response to President Donald Trump’s potentially crippling auto tariffs.”

” “The old relationship we had with the United States, based on deepening integration of our economies and tight security and military cooperation, is over,” Carney said on Parliament Hill after breaking from the federal campaign trail on Wednesday night in the face of Trump’s latest threats.

“We must fundamentally reimagine our economy. We will need to ensure that Canada can succeed in a drastically different world.”

“Ford said he also spoke to Carney and they agreed Canada would follow through on its full tariff retaliation, if necessary. Ottawa has said it would be ready to respond with up to C$155 billion in retaliatory tariffs on U.S. products.”

“Mexico, Canada and South Korea have duty-free access to the U.S. auto market under the terms of free trade agreements that Trump renegotiated during his first term in office.”

“The United States imported $214 billion worth of passenger cars in 2024, according to U.S. Commerce Department data. Trump said the U.S. would start collecting the new duties on cars and light trucks on April 3”

https://www.politico.com/news/2025/03/27/carney-says-tariffs-force-new-era-for-canada-u-s-ties-00254857

Tariffs on Imports From Canada and Mexico Are Still a Terrible Idea

“Part of his administration’s solution to the high price of eggs? More imports. As part of a $1 billion plan to combat the bird flu, the U.S. Department of Agriculture (USDA) announced..that it would seek to expand imports of eggs”

“A sudden constraint on supply—in this case, the bird flu—has pushed prices higher, and finding alternative suppliers might help ease the pain.
Now, someone in the White House might want to apply that same analysis to Trump’s plan for more tariffs on two of America’s biggest food suppliers.

Trump backed down from his threats to slap 25 percent tariffs on all imports from Canada and Mexico earlier this month, but at the time, he said those tariffs were merely delayed by 30 days.”

“Canada and Mexico accounted for 28 percent of all imports to the U.S. last year. If the costs of Trump’s tariffs are fully passed down the supply chain, consumers could be facing $225 billion in higher costs, according to an estimate by the American Action Forum (AAF). The energy and manufacturing sectors figure to be the hardest hit, thanks to the deeply integrated North American supply chains for products ranging from crude oil to critical minerals like cobalt and zinc.

Food prices would likely rise too. The U.S. imports more food than ever before, Bloomberg noted this week, and many of those imports come from America’s two neighbors. Mexico is America’s largest source of agricultural imports, according to the USDA. That includes 63 percent of U.S. vegetable imports and 47 percent of U.S. fruit and nut imports. All of that would be affected by the new tariffs.”

https://reason.com/2025/02/28/tariffs-on-imports-from-canada-and-mexico-are-still-a-terrible-idea/

Trump’s North American Trade War Accomplished Nothing

“Trump tore up the North American trade deal that he’d signed (and praised as the “best agreement we’ve ever made”) just five years ago. He sent the stock market tumbling, forced the American automotive industry and other manufacturers to beg for mercy, and antagonized two of America’s biggest trading partners and allies. And after all that, he got virtually nothing in return.
Indeed, Canada’s and Mexico’s governments may have gotten more. Their leaders learned that Trump sees 10,000 as a big and significant number and that they can appease his tariff fever by promising to just keep doing what they already do—as long as they make it sound like he’s convinced them to change course.”

“when Trump was asked directly by reporters on Saturday if there was anything Canada could do to avoid the tariffs, he said “nothing.” In various social media posts, Trump claimed first that the tariffs were intended to stop fentanyl from coming across the border And then, a day later, said they were meant to compel Canada to join the United States. Vice President J.D. Vance tried his hand at putting some random meats on this tangle of bones Sunday night, writing on X that Canada wasn’t keeping up with its NATO obligations.”

“The leaders of Mexico and Canada effectively called the president’s bluff that there was nothing they could do to avoid tariffs. Facing the reality that tariffs would cause serious pain for American businesses—something that he even admitted last weekend (maybe he’s learning?)—Trump retreated, leaving the United States–Mexico–Canada Agreement in tatters and the relationship between America and two of its key allies strained.

We should be glad that Trump safely found an off-ramp after steering the United States recklessly into a potentially ugly situation, and we can hope that he did not cause too much long-term damage while getting there.”

https://reason.com/2025/02/04/trumps-north-american-trade-war-accomplished-nothing/

Trump’s trade war with neighbours is delayed – what did they all get out of it?

So far, the concessions from Mexico and Canada are: things they were going to do anyways, things you didn’t need a big tariff threat to get, and two-way deals where the U.S. made its own promises. So, rather than successful threats getting important concessions, we had economic disruption, economic fears, and acted like assholes on the world stage with nothing substantial in reward.

https://www.bbc.com/news/articles/c805jjk2klko?fbclid=IwY2xjawIPKutleHRuA2FlbQIxMQABHdadgknzalPz6135umCzu9Qb5SOyxpU30Zf0Tba-2wX9n6muYrRPPpunJQ_aem_WZZSjUOb6XsMsZQF2W_1LA

North American Energy Preeminence Forum

In a series of panels about promoting North American gas, oil, and uranium energy in ways that will boost the economy and make North America strong and independent vis-a-vis world challenges, people are worried about the effects of Trump’s proposed tariffs which will hurt both countries’ economies and make energy more costly.

https://www.youtube.com/watch?v=xkoFy1itP9I