Canadian Prime Minister Mark Carney explains what happened.
“The US introduced in the last hours efforts to restrict our ability to have other trade deals. You heard me say a moment ago what we’ve accomplished in the last year, 20 new deals, economic and security partnerships. The prospect of doubling our market access because we believe in free trade. We’re the partner of choice in many respects for countries around the world, and Americans want to restrict that. They had language that would restrict that. Inacceptable.”
There is no country in the world that would sign such a coercive, one-sided, deal.
Good Faith Bargaining
For more than a year, Canada has worked tirelessly and in complete good faith with the United States to negotiate a new comprehensive trade agreement. We have been pragmatic, patient, and persistent. Our goal has always been to secure the best possible agreement for Canadian women and men. It has never been about signing an agreement at any cost or within a given timeframe.
Late last night, I ordered our negotiators to return to Ottawa. We cannot accept what the United States is offering us, and we refuse to grant them what they are asking of us.
Canada will apply equivalent duties, dollar for dollar, to those imposed by the United States, in order to protect Canadian workers, farmers, families, and businesses.
In the coming days, we will unveil the details of these new tariff measures, which will take effect on the Tuesday following Labour Day.
Spotlight Energy
That is correct.
Excluding energy that the US gets at bargain prices from Canada, the US has a trade surplus with Canada.
Moreover, Trump only looks at goods. The US has a trade surplus in services with Canada.
America Is Trying to Break Us
Carney: “Last spring, I warned that America is trying to break us so they can own us. Canada is becoming stronger and less dependent on America. We are already giving ourselves more than they can take away. And we are just getting started.”
Accurate Reflections on Trump
Ontario Premier Doug Ford lashes out at Trump: “President Trump is the type of person that would steal your lunch money the first day. He’d steal the toque off your head the second day, and the third day he’d steal your running shoes. He is not to be trusted whatsoever.”
Iran Update
Fact Check on Trump’s Claim “Canada Ripped Us Off”
In February, I did a Fact Check on Trump’s Claim “Canada Ripped Us Off”. What’s the Real Story?
For 2025, the total balance with Canada was -53 billion. But the oil balance was -84 billion. Excluding oil, the US has a goods trade surplus with Canada of 31 billion.
Q: Why exclude oil?
A: Because the US needs Canadian oil and gets it at bargain prices too!Energy Synopsis
- The US gets Canadian oil at a 15 percent discount, and it’s oil that our refineries are built to handle.
- The US exports West Texas Intermediate, a higher grade of oil, at a higher price.
- Excluding oil, the US has a trade surplus with Canada for 18 years.
Q: What About Services?
A:The US runs a constant services trade surplus with most of the world.
A Lose-Lose Proposition
Trade wars are a lose-lose proposition.
I have many times stated that the correct response to tariffs is to lower them to zero no matter what other nations do.
I now wonder if that applies when dealing with an economic madman who does not honor any deal he makes, and always wants more.
The question is moot however, because politically speaking it is impossible to not retaliate.
In this case, only 18 percent of Canadians don’t want Carney to respond.
What Trump Understands
The only thing Trump understands is force.
Trump has backed down on China every time China responded to his tariffs by cutting off rare earth elements and magnets.
Due to the political requirement to retaliate, Carney needs to smack Trump in the face as hard as he can with an economic 2 by 4.
An export ban on Canadian oil to the US and/or a ban on Canadian auto parts to the US would do exactly that. Then we would see how Trump deals with $7.00 diesel and no cars for sale.
Because some Canadian oil exporters are shut down for scheduled repairs, the price of diesel is poised to blast higher anyway.
Iran shows the way. Now it’s Canada’s chance. Only overwhelming force works because this needs to be quick.
Dear Mark Carney, please shut off all oil and car parts to the US and let Trump deal with it.
Trump would be demanding renegotiations in about one hour flat.
Lunatic Talk
In case you missed it, please see Trump Threatens to Use the Military on the US Bond Market. What!?
Trump responds to a reporter’s question with an answer that makes no sense.
Given that bond yields and diesel are two things Trump is very concerned about, the fastest way to get a favorable response from Trump would be an immediate, full shutdown of all oil to the US.
That’s much better than a piecemeal response that hurts Canadian consumers as mush as it does the US.
Such a move would impact US gasoline prices, diesel prices, and bond market prices.
I’m heading to Canada in mid September to visit my family. Will be interesting to see what things are like when I am there.
“Such a move would impact US gasoline prices, diesel prices, and bond market prices.”
That may be the only way to deal with this stupid orange clown. Because one thing we know for sure….
Do worry, Trump, Walrus, GOP, and democrats will find a way to make things even worse.™
Give it a bit. Carney will dangle out a few symbolic concessions in exchange for something he really wants, like an escalation of The War On Russia.
Two of the reasons Canada walked from the
negationsextortion was due to the Americans demanding we buy into the Golden Dome & get all 88 of the F35s, and accept a restriction of Canada’s independent capability to sign trade deals with other international nations…Can you say “51st state”?Pitting the long-of-tooth & inept west against Russia/China/Iran would be a fools’ errand. Carney is not a fool.
Canada should be buying the F35s. The Gripen is a piece of trash that no one outside Sweden uses. Every test by the Canadian Military showed the F35 is superior. There’s no reason to buy the Gripen other than to avoid purchasing US planes.
That’s the easiest carrot to give to Trump in a deal.