Canada is making urgent diplomatic efforts to prevent the United States from imposing new 50% tariffs on Canadian goods worth about $20 billion, according to infohub.kz.
Canadian Prime Minister Mark Carney held a phone call with US President Donald Trump. The prime minister's office said the two discussed ongoing trade negotiations, but did not disclose details of the conversation.
The new tariffs are set to take effect on August 19. They would affect approximately $20 billion in Canadian imports, and would even apply to some goods that previously enjoyed preferential treatment under the USMCA agreement (the United States-Mexico-Canada Agreement).
One of the key sticking points in the negotiations remains US tariffs on Canadian automobiles. The current rate is 25 percent. The sides are discussing the possibility of reducing it to 15 percent, with further reductions depending on the share of American components in the vehicle. Washington proposes to count only parts made in the US, while Ottawa insists on including all North American components, including Canadian and Mexican ones.
Representatives of the Canadian auto industry believe that even a 15 percent rate is too high. According to their estimates, before the tariffs were introduced, the average profit margin in the industry was about 6 percent.
Canadian negotiators continue consultations in Washington. Earlier, they held a nearly two-hour meeting with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. Canadian business warns that the new tariffs could lead to job losses and plant closures, especially in the forestry, wine, and dairy sectors.
The Canadian government has previously stated that if the tariffs take effect, it is considering various response options, including support for affected industries and a possible suspension of bilateral trade negotiations.