Carney in Canada has a tough conversation with Trump

This is another curveball in the U.S. trade war – a new margin from Donald Trump threatens unexpected tariffs on Canadian goods starting next month.

This is because the two countries are engaged in fierce trade negotiations aimed at achieving a new deal in the coming days, and what the latest tariff threats mean for those negotiations is unclear.

But Canada’s new Prime Minister Mark Carney began to face problems with whether he could stand up and get a fair deal for his promised Canada.

Carney won the vow of the April election to bring his “elbow” to the U.S. threat, relying on a popular hockey metaphor for describing a confident and confrontational style.

But Canada’s recent concessions to Trump seem to have been almost unsuccessful so far.

The latest was in late June, when Canada canceled plans to impose a digital service tax (DST) on large tech companies after Trump threatened to end negotiations on the policy.

The White House said Canada’s demands were “fallen”, a move that sparked debate in Canada.

Canadian Commentator Robyn Urback wrote: “Maybe Prime Minister Mark Carney’s elbows are tired.”

So far, the government’s approach to negotiations up and down at the elbow can be described as “chicken dance.”

Meanwhile, Blayne Haggart, a political science professor at Brock University, argued in a recent article by The Globe and The Mail: “Not having any strategy about Carney, especially his pursuit of ‘integrated’ trade and security agreements, is meaningless.”

He said returning to DST made “much less”.

Still many are willing to give Carney more time, and the polls show that his administration has strong support.

Ottawa’s Canada-U.S. relations, Roland Paris, a former adviser to the U.S. relations, told the BBC it’s too early to say whether Canada admits things too early.

“It depends a lot on the final agreement,” he said.

But Mr Paris said it was clear that Trump pushed hard bargains.

“Ultimately, Carney seems to have commissioned Trump and we’re left with a bad deal that he’s going to pay the political price at home,” he said.

Before returning to DST, Canada tried to appease the president by pledging $1.3 billion early this year to enhance security of shared borders and appointed the “Fentanyl Tsar” in Trump’s claim that the drug was flooded with disasters.

Still, in a letter announcing the latest tariffs on Thursday, Trump once again warned Canada about the drug.

Carney also did not take any further measures when the president doubled his tariffs on steel and aluminum last month.

The Prime Minister responded to the new threat of the 35% tariff on August 1: “In the entire trade negotiations with the United States, the Canadian government has been firmly defending our workers and businesses.”

He said Canada will continue negotiations, with the current deadline for applying for the agreement next month. (The two countries have previously set time limits for July 21)

The good news for Canada is that the new tariff rate does not apply to goods under the U.S.-Mexico Free Trade Agreement, which covers the vast majority of cross-border trade.

President Trump has also sent similar notes to more than 20 countries as part of his plan to reach a new deal with his U.S. trading partners.

At home, Canadians with cross-political stripes still violate Trump’s tariffs.

Conservative leader Pierre Poilievre said Thursday that his party is ready to do everything he can to “get the best deal for Canada”, while British Columbia Prime Minister David Eby said Trump’s letter was “a further reminder of why Canadians need to unite.”

Experts point out that ongoing negotiations may be more likely to get along with each other than the eyes.

Fen Hampson, professor of international affairs at Carlton University, believes that despite its smaller economy, it still has some leverage, international negotiator Fen Hampson.

“It is important to remember that it is the American consumers who pay tariffs, not us,” he said.

Many U.S. manufacturers also rely on Canadian products such as steel and aluminum, which are currently subject to 50% tariffs.

“You can’t judge the outcome of a negotiation by the last step or the concessions you made,” Professor Hampson noted. “You can only judge it by its results.”

Experts also pointed out Carney’s efforts to reduce dependence on the United States, including signing arms deals with the EU, as well as quickly tracking large projects and eliminating domestic trade barriers.

Canadian industry minister Melanie Joly put pressure on Trump’s latest threat on Friday, saying the administration “does not openly negotiate.”

She denied that Canada did not stand up.

“We are dealing with a very unpredictable U.S. government,” she said.