As U.S. President Donald Trump’s Aug. 19 deadline approaches, Prime Minister Mark Carney is making concessions to keep looming tariffs at bay. This could prove to be a defining moment in deciding the fate of the United States-Mexico-Canada Agreement, for the choices are stark: appeasement or defiance, with little room to maneuver in-between.
The Globe and Mail has reported that a deal may be in the making in which the U.S. lowers – but does not remove – duties on steel and aluminum and perhaps autos and forest products. In exchange, Canada would remove retaliatory tariffs on autos and take action on other U.S. irritants such as alcohol and dairy.
The devil is in the details, and the haggling over tariff rates and quotas, but there can be little doubt that Canada is going to have to concede a lot before the President and his tariff-hungry team are mollified.