In the span of about 15 hours, Canada’s central bank chief warned governments against using national security concerns as a “pretext for inefficient protectionism,” the federal government announced potential new tariffs on Chinese imports, and a U.S. presidential nominee doubled down on an economic plan that would see about 75 per cent of Canada’s global exports face severe new penalties.
China responded to the EV tariff by launching an “anti-dumping” investigation into imports of canola from Canada. A suspension on the import of Canada’s rapeseed, as it’s also called, would be devastating to the industry.The U.S. government is escalating its fight with Canada over a new tax Ottawa implemented in June on foreign tech giants such as Apple and Amazon.
As that fight escalates, a potentially larger one is brewing in the background over CUSMA. Both Democratic nominee Kamala Harris and Trump could prove challenging when it comes time to renegotiate the trilateral agreement in 2026.The country’s relations with Trump are “chilly at best,” and Harris voted against the agreement when she was a U.S. senator. She argued at the time the trilateral deal didn’t do enough to protect American workers.
Describing a “fragmented” world in which geopolitical tensions are splintering supply chains and pushing countries to fight for themselves, he called for investment in “effective multilateral institutions.”
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