Tag - EU-Canada free trade

Canada looks to Germany to offset Trump tariff agenda
OTTAWA — Prime Minister Mark Carney is heading to Germany to build out defense and energy ties, a move designed to buffer Canada’s economy against the tariff threats posed by U.S. President Donald Trump. “There’s a broad range of areas, from critical minerals to energy and defense and security, where we are intensifying our discussions with Germany,” Carney told reporters Friday on Parliament Hill. He said he’ll be accompanied by senior members of his Cabinet responsible for defense, trade and industry to bolster economic and security cooperation. The prime minister has said Trump’s trade agenda presents Ottawa with no choice but to build new alliances. “Canada must be looking elsewhere to expand our trade, to build our economy and to protect our sovereignty,” the prime minister said earlier this year. “Canada is ready to take a leadership role in building a coalition of like-minded countries.” To that end, Carney’s government has been on a full-court press in Europe. This week, Industry Minister Mélanie Joly and Foreign Affairs Minister Anita Anand were in Scandinavia. Joly was in Sweden and Finland, while Anand met with Canada’s Nordic 5 NATO allies in Finland. German Chancellor Friedrich Merz will welcome Carney in Berlin Tuesday morning. Canadian Defense Minister David McGuinty is scheduled to meet with his counterpart, Defense Minister Boris Pistorius. Natural Resources Minister Tim Hodgson will do the rounds in Berlin, meeting with CEOs and executives from energy, manufacturing and defense companies. He’ll also deliver a speech to a business crowd at the Canadian embassy. “It’s really a trade mission focused on energy and critical minerals,” said a government official with knowledge of Hodgson’s plans, and who was granted anonymity to speak about them. Germany is “one of the priority markets” in the EU because it is the continent’s largest economy, the official noted. Germany is interested in Canada’s rare earth minerals to support clean energy technology and electric vehicles. It also needs to power its buildout of military hardware as a NATO member striving to meet the alliance’s new 5 percent of GDP spending target, said the official. Germany is still weaning itself off Russian gas. Hodgson will also be following up on the 2022 Canada-Germany Hydrogen Alliance that set the ambitious goal of beginning transatlantic deliveries this year. “We’ve been working very hard with them for the last several years on a transatlantic hydrogen corridor,” the official said, but added no further details. Germany also wants to secure new sources of critical minerals to counter China’s domination and weaponization of the global market. “Canada has a lot to bring to the world stage, but that also requires catalyzing investment,” the official said. “We are open to German investment in Canadian projects, if those will help get projects off the ground.” Carney said he looked forward to talking to Merz after hosting him at the G7 in Alberta earlier this year, building on Canada’s larger trade deal with the European Union. Ukraine will also be on their agenda, as it is in all conversations Carney is having with foreign leaders these days, including on what Canada’s future role might be. “I have had conversations about this, including with President Trump, in the last few weeks. We are making progress,” he said, calling it a “delicate” question. Trump said Friday that he wants “to be very good” to Canada. “I like Carney a lot,” he said in the Oval Office. “I think he’s a good person.”
Defense
U.S. politics
Energy and Climate
Trade
Trade UK
King Charles declares Canada ‘true north … strong and free’
OTTAWA — King Charles III delivered a clear message Tuesday to anyone who doubts Canada’s sovereignty. “The true north is indeed strong and free,” the king said in a speech to Canadians, borrowing a line from the country’s national anthem. Prime Minister Mark Carney enlisted the king to deliver the Liberal government’s “message of sovereignty” in reply to U.S. President Donald Trump’s tariffs and annexation threats. The king did not refer to the president by name, sticking to his role of reading the throne speech on behalf of the government to open a new session of Parliament. The remarks repeatedly underscored Canada’s independence and outlined Carney’s priorities. The speech, written by Canadian government officials, also emphasized that the U.S. and Canada are “sovereign nations” with a relationship “rooted in mutual respect and founded on common interests.” The two nations are currently undergoing negotiations to secure a new trade and security deal. “Many Canadians are feeling anxious and worried about the drastically changing world around them. Fundamental change is always unsettling. Yet this moment is also an incredible opportunity,” the king read. “An opportunity for renewal.” Ahead of the speech, officials emphasized that the intended audience was not only Canadians, but also the Trump White House. Since returning to office, Trump has repeatedly floated the provocative notion of Canada becoming the 51st state — an ongoing taunt that stirred unease north of the border. At the same time, his unprovoked trade war inspired a surge of national pride. Carney rode that uncertainty to top office last month, convincing Canadians his experience in global finance — and leadership at the helm of two G7 central banks — qualified him to lead Canada in a volatile moment. Throughout the campaign, Carney amped up the stakes. “America wants our land, our resources, our water, our country. … These are not idle threats,” he repeated again during his election night speech. “President Trump is trying to break us, so that America can own us.” And in a recent Oval Office meeting, Carney advised Trump that Canada “is not for sale. Won’t be for sale, ever.” And lately, he’s been promising to redefine the terms of the Canada-U.S. relationship, having declared the previous one “over.” Now, as the House of Commons returns after a six-month hiatus, Carney’s opening speech establishes the road map for how he plans to “transform Canada’s economy” to lead the G7. Ottawa pulled out the red carpet for the king’s 24-hour whirlwind visit — just the third time in Canadian history that a royal has opened Parliament. The speech brought out Canada’s A-list, with former Prime Ministers Kim Campbell, Stephen Harper, Jean Chrétien and Justin Trudeau seated in the Senate audience. Outside on Wellington Street in downtown Ottawa, spectators scrambled to catch a glimpse of the king and queen’s carriage ride. “Canada is not for sale” hats mixed with red-and-white outfits, with the occasional union jack waving above the din. When the carriage whisked past the crowd at a good clip, some onlookers giggled at the brevity of it all. Moments later, many appeared startled as a 21-gun salute formally marked the king’s arrival at the Senate building. Ottawa doesn’t break out pageantry to this extent all that often. Despite the pomp, a new online survey by the Angus Reid Institute of 1,685 Canadian adults reveals that a whopping 83 percent of Canadians say they are “indifferent” or “don’t care” about the monarch’s visit — though a separate online survey of 3,400 Canadian adults shows the country warming to the king. The Liberal government pledged in its speech to join ReArm Europe in a bid to invest in transatlantic security. Ottawa also plans to beef up Canada’s Arctic military footprint. The king called the North “an integral part of Canada, as this region faces new threats” — a nod to China and Russia, which the king didn’t name directly. “The government will discharge its duty to protect Canadians and their sovereign rights, from wherever challenges may come at home or abroad,” the speech said. The Liberal government is also advancing measures to strengthen its borders with more enforcement against fentanyl — a concern that was raised by Trump in phone calls with then-Prime Minister Trudeau. In March, the president used the drug as justification for slapping a 25 percent tariff on Canadian goods and a 10 percent tariff on energy and potash imports from Canada. The Trump administration later limited these tariffs to goods that do not comply with the United States-Mexico-Canada Agreement. (Canada’s steel and aluminum sectors are subject to separate tariffs.) Fentanyl seizures by the United States Customs and Border Patrol at the Canada-U.S. border represent less than 0.1 percent of U.S. fentanyl seizures between 2022 and 2024, data shows. Nick Taylor-Vaisey contributed to this report.
Politics
British politics
Tariffs
EU-Canada free trade
Canadians want to join the EU. An empathetic Brussels says it will never happen.
Brussels reacted warmly to the results of a poll showing interest among Canadians in joining the European Union — before clarifying that the idea is a nonstarter.  The survey, conducted by Abacus Data in late February, found that 44 percent of Canadian respondents believe their country should join the EU, while only 34 percent oppose the idea. A broader question on general support for joining the bloc drew 46 percent approval. Those sentiments drew bemused appreciation from Brussels. “We are honored with the results of such a poll. It shows the attractiveness of the European Union, and it shows the appreciation of a very large share of Canadian citizens for the EU and its values,” said Paula Pinho, spokesperson for European Commission President Ursula von der Leyen, at the Commission’s Wednesday briefing, before adding that she “will not go into” a possible EU application from Ottawa. Later, in response to a journalist’s question, Pinho confirmed that Article 49 of the Treaty on the European Union states that only European states can apply for EU membership. Still, the poll underscores warming sentiment in Canada toward the EU: Some 68 percent of poll respondents said they hold a positive view of the bloc — double the 34 percent who said the same about the United States. While Canadians overwhelmingly recognize Washington as their country’s most crucial international partner, the poll signals a shifting tide: More respondents saw the EU overtaking the U.S. as Canada’s primary global ally in the next three to five years. Ottawa is also intent on deepening coordination with Brussels, especially on trade. As Canada’s Foreign Minister Mélanie Joly hosted G7 leaders in Charlevoix on Wednesday, she signaled that aligning with Europe on U.S. retaliatory tariffs will be a top priority. “In every meeting, I will raise the issue of tariffs, to coordinate our response with the Europeans and to put pressure on the Americans,” Joly said.
Politics
U.S. foreign policy
Foreign policy
EU affairs
European politics
Trump says he’ll impose 25 percent tariffs on steel, aluminum
President Donald Trump said that he will announce 25 percent tariffs on all imports of steel and aluminum on Monday, and added that he could detail his plan to impose reciprocal tariffs the following day. “Any steel coming into the United States is going to have a 25 percent tariff — aluminum too,” Trump told reporters on Air Force One on Sunday as he traveled to New Orleans for the Super Bowl. Trump did not specify when those new duties would come into effect. But Trump said the new duties would apply to all countries, including Canada and Mexico — who were exempted from steel and aluminum tariffs from the US when he signed the U.S.-Mexico-Canada Agreement into law during his previous administration. “Why are we protecting another country,” Trump said of Canada. “If we stop allowing them to make cars — through tariffs and other things: cars, trucks, etc., what they make — they’re not viable as a country.” The U.S. maintains 25 percent tariffs on steel and 10 percent tariffs on aluminum for many countries, which the first Trump administration imposed in 2018 under Section 232 of the 1962 Trade Expansion Act. Several trading partners negotiated to remove the duties. “This is the next four years. Shifting goalposts and constant chaos, putting our economy at risk,” Ontario Premier Doug Ford shared on X Sunday evening. Trump on Sunday also said that he would be imposing reciprocal tariffs on trading partners that would match the duties imposed by other countries in the coming days. He said those tariffs would be announced Tuesday or Wednesday, and would go into effect “almost immediately.” “If they are charging us 130 percent and we’re charging them nothing. It’s not going to stay that way,” Trump said. “Every country will be reciprocal.” Trump had reiterated the plan on Friday and suggested those duties would be imposed instead of an across-the-board tariff on all imports, a major reversal from his proposal on the campaign trail to levy a “baseline” tariff on all imports of between 10 and 20 percent. The U.S. imposes the same tariffs for most countries, although the individual U.S. tariff rates vary depending on the product. Some tariff rates, like for cars, are low at only 2.5 percent. Other tariff rates, like for clothing and shoes, are typically higher.
Politics
Policy
Tariffs
Trade
Aluminum
Majority of Justin Trudeau’s caucus calls on him to quit
OTTAWA — With a majority of his caucus now calling on him to resign, Prime Minister Justin Trudeau is on a ski holiday, reflecting on whether to stay or go. Trudeau is way down in the polls and facing challenges from within his party about whether he’s the right leader to unite Canadians. His decision comes as Canada braces for a tariff war when Donald Trump returns to the White House in three weeks. Canadians will head to the polls in 2025, a federal election that could be triggered in late January if Trudeau’s foes topple the minority government when the House returns from break. “Prime Minister Justin Trudeau no longer has the support of caucus and to maintain some dignity he should immediately tender his resignation,” Calgary lawmaker George Chahal wrote in a Dec. 27 letter to the caucus. The missive follows a recent virtual meeting during which 51 Liberal members of Parliament from Ontario discussed Trudeau’s leadership. After the gathering, the party’s largest caucus group relayed a message to the prime minister: Resign. “We’ve reached a breaking point,” said one Liberal who attended the meeting, and was granted anonymity to speak freely. “There’s a critical mass now that has been reached and that was not in place before.” For a year Trudeau has faced calls to step down from the party he’s led since 2013. Demands intensified after the explosive exit of Chrystia Freeland earlier this month. Trudeau’s long-time ally quit as deputy prime minister and head of finance citing tension between their offices over how to handle Trump’s tariff threat along with a domestic holiday tax break. Canada’s prime minister has also been abandoned by his Atlantic caucus, a group Trudeau’s team considered vital to any hopes it had of winning a fourth term. The Atlantic Liberals now say it’s in the best interest of the prime minister to resign. The lawmakers no longer believe Trudeau can beat Pierre Poilievre, a populist conservative who has made massive inroads with Canadians by capitalizing off of a housing and affordability crisis with simple slogans that promise change. They also warn that Canada could be catapulted toward instability if Trump makes good on his Day 1 promise to slap a 25 percent tariff on all Canadian goods. “Time is of the essence, and our Caucus is of the view that it is not tenable for you to remain as the Leader, and that we need to allow for the necessary conversations on transition to take place,” Atlantic Caucus chair Kody Blois wrote to the prime minister on Dec. 23. A senior Liberal source, who was granted anonymity to speak freely, said the letters won’t rush Trudeau’s reflection. The prime minister is with his family on a British Columbia ski vacation and expected to remain out of office until Jan. 6. The Prime Minister’s Office did not respond to repeated requests for comment. Liberal caucus members expect an answer when Trudeau lands back in Ottawa. Some want an emergency meeting to hear directly from their boss. Others say they won’t run again if he sticks around. There is no mechanism within the party to turf Trudeau, so it’s a decision he’ll have to make on his own. If he decides to step down, the Liberal Party constitution states that its board would select an interim leader. “His thinking right now is less about his political legacy,” the senior Liberal source said, and more about “leaving the party in the best shape as possible” and ensuring there’s a plan in place. Trudeau was presented with data on his party’s fortunes in early December — before Freeland resigned. The prime minister’s inner circle saw a pathway to a minority government win based on strong voter turnout in Quebec, shoring up Atlantic caucus support, and on appealing to Canadians through kitchen-table economics. Chair of the Quebec caucus, Stéphane Lauzon, wouldn’t comment on reports that he’s been instructed to inform Trudeau that Liberal lawmakers in his province want him gone. “No letter has been sent to the Prime Minister from the Quebec caucus. Unfortunately, what happens in the Quebec caucus stays in the caucus,” Lauzon said in a statement to POLITICO. Trudeau continues to bring in more money through fundraising than any other Liberal MP — a calculation that may be fueling his indecision, the senior source said. There is no obvious choice to replace him as leader. Many Canadians would be unable to recognize other possible contenders including Finance Minister Dominic LeBlanc, Foreign Affairs Minister Mélanie Joly or Innovation Minister François-Philippe Champagne. Some observers say Freeland wants Trudeau’s job. At least one lawmaker is publicly touting the former journalist’s “exceptional political acumen” and encouraging a leadership bid. “Whether by design or circumstance, she had emerged as a credible and stable alternative to your leadership,” Liberal MP Chandra Arya wrote in a letter to Trudeau. “Despite your low approval ratings, my support for you stemmed from the lack of a viable and reassuring alternative. Chrystia has now filled that void.”
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