Additionally, tensions are escalating in the deeply interconnected trade relationship between our two countries. This change is in the wake of the U.S. government having recently executed several tariff increases. In August, President Donald Trump increased tariffs on imported Canadian products to 35 percent. He pointed to a lack of clarity on border security and Ottawa’s retaliatory tariffs as the reasons he made his decision.
During a meeting held in Washington on August 27, key officials from both nations discussed shared priorities, including border security, which has become a pressing issue in light of the tariff increases. The high-profile panel included U.S. Attorney General Pam Bondi and Canadian Justice Minister Sean Fraser. Public Safety Minister Gary Anandasangaree and “fentanyl czar” Kevin Brosseau were present. Yet what these discussions really emphasized was the urgency that both governments are clearly bringing to this work.
Canadian PM Mark Carney is reportedly even now on the look-out for a face-saving way to de-tariffise. These tariffs have wreaked havoc on trade. Carney has been especially outspoken against the negative impacts of these duties on the Canadian economy. He’s looking at how to minimize their harmful effects. In June, Canada replaced all that with extensive border legislation as part of the same strategy. This legislation represents a key step towards increasing security and strengthening enforcement of the United States’ trade agreements.
Under the Canada-U.S.-Mexico Agreement (CUSMA), tariffs are not charged on goods that adhere to strict rules of origin. This provision is particularly important for Canadian exporters who want to reduce or eliminate the negative impact of upwards of 300% increases in duties on their product. The current climate suggests that many Canadian businesses may still face challenges navigating the complexities of trade under the new tariff regime.
In light of this ever-changing situation, Canada has made several investments to strengthen the security of our borders. Together, these investments will improve safety and help accommodate the growing demand for efficient cross-border trade. Our neighbors to the North U.S. and Canadian officials talk regularly about the need of securing their mutual border. They can’t ignore the desire of their people to keep trade flowing smoothly between their two nations.
This current back-and-forth shows that despite increasing hostilities, there is indeed a willingness from both sides to work together to come to terms. The substantial U.S. tariffs are no small hurdle. The collaborative spirit evident in the last few meetings imbues some optimism that an outcome favorable to both countries can still be reached.
