Canada still prefers a three-country NAFTA deal: Prime Minister Trudeau

   Canada column for Sunday, July 22/18

   THE CANADIAN REPORT

   (c) By Jim Fox

   Prime Minister Justin Trudeau reaffirmed the value of a renegotiated North American Free Trade Agreement as President Donald Trump again attacked Canada’s dairy tariffs.

   There are suggestions a deal might be reached between the U.S. and Mexico before one with Canada’s involvement.

   Trudeau said, however, an agreement with the three partners is preferred as being the best for all involved for “ensuring prosperity for workers across North America.”

   Mexican government officials will be in Washington next Thursday to resume talks but there is no plan for Canada’s Foreign Affairs Minister Chrystia Freeland to join the discussion.

   Trudeau told reporters on Friday that a renegotiated NAFTA “is at the centre of everything we do” to create jobs and expand the economy.

   The U.S. steel and aluminum tariffs imposed on Canada were in response to the tariffs of up to 270 percent on dairy, Trump said.

   Under Canada’s supply-management system, there are domestic production quotas on dairy, eggs and poultry to keep prices stable and guarantee farmers a steady income.

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Interest rate hikes make living costs more for most Canadians

   Canada column for Sunday, July 15/18

   THE CANADIAN REPORT

   By Jim Fox

   Canadians are paying more for variable rate mortgages and lines of credit as the central bank raised its key interest rates over free trade concerns.

   The Bank of Canada upped the rate by 0.25 percent to 1.5 percent, the fourth increase in a year as the economy heats up with strong employment gains.

   Canada’s major banks followed by increasing their prime-lending rates one quarter of a point to 3.7 percent.

   Bank Governor Stephen Poloz said the increase was prompted by “the various uncertainties we face” with trade tensions the biggest issue for the country.

   As for U.S. tariffs on steel and aluminum, there could be difficulties for some industries and workers but “the effect of these measures on Canadian growth and inflation is expected to be modest,” he said.

Auto, truck tariffs would threaten Canadian jobs, manufacturing

   Canada column for Sunday, July 8/18

   THE CANADIAN REPORT

   (c) By Jim Fox

   Canada’s economy and jobs would take a direct hit should the United States carry out its threat to put tariffs on Canadian-made cars and trucks.

   The government retaliated with tariffs on July 1 against President Donald Trump’s new duties on Canadian steel and aluminum.

   Prime Minister Justin Trudeau promised quick action on the further threat of a 25-percent tariff on cars and trucks.

   The federal strategy on tariffs is to neither back down nor escalate the dispute, said Foreign Affairs Minister Chrystia Freeland.

   A CIBC Capital Markets study predicted that U.S. tariffs at 25 percent on foreign auto sales in the U.S. would cut Canadian production by 400,000 vehicles a year.

   That number could rise to 900,000 fewer vehicles annually if such a tariff is aimed solely at Canada.

   The Canadian Automobile Dealers Association wants the government to resist retaliatory tariffs on autos as it would put up to 30,000 sales jobs at risk in the retail sector.

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Canada retaliates against U.S. tariffs including taxes on ketchup, whisky

   Canada column for Sunday, July 1/18

   THE CANADIAN REPORT

   (c) By Jim Fox

   A ketchup war highlights the tiff between the United States and Canada over trade.

   Canada’s Liberal government, retaliating for President Donald Trump’s punishing tariffs on steel and aluminum, is hitting back with fees on $16.6 billion on products from the U.S. effective today (Sunday).

   At the same time, the government of Prime Minister Justin Trudeau announced a $2-billion financial-aid package to support workers and industries in the vulnerable steel, aluminum and manufacturing sectors.

   Foreign Affairs Minister Chrystia Freeland unveiled a list of U.S. products facing reciprocal tariffs already on steel and aluminum imports from the U.S.

   The items subject to new duties of 10 to 25 percent are from a wide range of sectors, including ketchup, maple syrup and whisky, lawn mowers, motorboats, playing cards and screws.

   Canada’s dollar-for-dollar countermeasures are reciprocal retaliation to “illegal” and “absurd” tariffs, Freeland said.

   Trudeau will visit Leamington, Ontario today – Canada’s 151st birthday – where U.S. based Heinz closed its ketchup plant with the loss of 700 jobs in 2014.

   French’s then began making its ketchup from those Canadian tomatoes and opened a plant in Toronto as Heinz now ships its U.S. ketchup north and faces new duties.