After the flying deadline, what next to the US-Canada trade?

Self-imposed deadline for the new US-Kanada trade agreement came on Friday and gone. So what happens next for these two deep -involved neighbors?

Canada and the United States have been closed for six months in the Tariff war, and the trade agreement has remained missing despite discussing “intense” negotiations in recent weeks.

President Donald Trump and Prime Minister Mark Carne have poured cold water on the idea that both quick and free, will reach the contract. And Trump threatened the hopes of the last minute agreement this week about the Canada movement to approve the Palestinian state.

The G7 meeting of June has just changed in disappointment, when the two leaders gave themselves a summer deadline.

Canadian negotiations have concluded that “this is not the end of the world” if there is no quick agreement and “there is a lot more importance than that quality and crowded agreement”, said Dofa Hampson, a professor of international affairs at the Carleton University.

Carne – who has been strongly criticized for negotiations – he has told himself that he will not just “any agreement”.

Nevertheless, there is pressure from both sides to recover businesses.

Conservative leader Pierre Polyvre said on Friday that he shared the “disappointment of the Canadian people” that there was no contract due to the deadline. He urged the liberals of Carne to “control their financial future”.

Canada now has to face a rate of 35%, though the goods have been complied with under the current free trade agreement. American global tariffs on steel, aluminum, auto and auto areas are hurting, as the US is a top market for those regions.

The Trump administration has proved the justification of the charges by claiming that there is a lack of cooperation over the flow of illegal drugs such as Phantanilla. Canada rejected that about 1% of the United States has emerged in Canada in Canada. Trump has also brought new border protection and “fentanil jar” in the last few months in an attempt to overcome the concerns of Trump.

Threatens on copper and the expected rate The end of the global rate suit used by the shopkeepers under $ 800 Also pinch.

Canada is C respond with $ 60 billion ($ 43.3n; .32.3BN) In counter tariffs on various American items – The only country with China Direct revenge against Trump.

“It is not surprising that the business is definitely eager to be eager after the announcement of the month and month confusion,” said Catherine Fortin-Lefire, Vice President of the Canadian Chamber of Commerce, Vice President of International Policy and World Partnership.

“But at the same time, they do not really fade at the expense of a bad contract.”

Some components give Canada some breathing rooms.

On paper, it seems that the country has faced a harsh rate from the United States, but at first glance, trade is more free than the suggestion of levy.

In March, Trump announced the compensation on the goods in accordance with the Mexico Agreement, which is known as Kusma and the US USMCA in Canada.

The deal was implemented in Trump’s office in the first term – five years ago.

Almost 1% of the United States is able to finally free the cost of the Canadian exports, if the companies file the necessary documents under that agreement.

Professor Hampson said, “There is no question about this, there is no question in other countries,” Professor Hampson said.

This means that Canada is paying a rate of less than 15%of the entire European Union, South Korea and Japan, or in the United States like Indonesia and Philippines, already in the ink.

Otawa has also introduced some aid programs for affected industries, and the counter prices have collected import duty of about $ 1.5 billion over the same period last year.

And with the rising confidence in US consumers and the prices remaining there, the Americans can wait for the pain to feel the pain, helps Canada’s negotiation status.

Professor Hampsons said, “These are American people who are going to squock.”

Ms. Fortin-Lafivere has estimated US businesses, especially small companies that do not have the same resources to resist them, will pressure political leaders.

“So the pressure can play for our benefit,” she said.

Canadian people also seem to be ready to give the new Prime Minister somewhat. Opinion poles indicate that they are usually satisfied with its trade handling.

Carne “understands that what is good for the economy is actually the best for them,” said Martha Hall Findley, director of the University of School of Public Policy in Calgary and former Liberal MP.

Trump has said that they are raising rates to increase domestic production, open in foreign markets and raise money for the government.

He is using them to push countries like Canada with military expenses to push issues on non -trade issues.

Over the past few weeks, Otwa has significantly increased its protection costs, promoting security on the shared border, and US tech companies have committed digital taxes that protest.

These tricks show that Canada “Americans are doing what we wanted to do”, said Ms. Fortin-Leafivere.

She hopes that Canadian negotiations are pressing for the low cost as low as possible, as well as working to ensure that the two deep integrated supply chains are able to work together.

Canada is putting pressure to relax at 50% steel and aluminum rates, which US Automachers are screaming??

And on Thursday, Treasury Secretary Scott Besent indicated in an interview to CNBC, which is an option on the table.

Meanwhile, Trump has increased irritability in many long -term trade, besides the fenter, including the protection around Canada’s dairy industry.

Otawa has warned of more resistance if the discussion has previously collapsed, although it may reduce political appetite.

British Colombia’s premier David ABI recently told Bloomberg that revenge rates “seem to have no kind of hope we hope”.

Professor Hampson said, “Americans are dominated here. So you want to be smart about it.”

The Carne spokesman refused to say whether more counteramezer stayed on the table. Meanwhile, Canadian negotiations are mostly in Washington this week, and discussing with the ministers responsible for Canada-US. Say trade on Friday An acceptable agreement “was not yet in sight”.

Ms. Fortin-Lefivare said, “We are all looking for a contract.”

But the research of her business group indicates that companies are making accidental plans. About 40% of the goods exporters have already diverted the suppliers outside the United States and have diversity of 28% of the people.

He is also looking at what could be more challenging discussions with Kusma proved that a serious backstop is for the next year.

This is part of the widespread pressure in the country to diversify the trade away from the United States, to down the obstacles to the trading in the provinces, and move on to big projects more quickly.

The economic relations between the two countries will remain strong – Canada will still be the largest trade partner in the United States and financial and security.

But the irony is that Trump’s threats are “forcing Canada to understand that we have to get our own financial home properly,” said Ms. Hall Findley.

“This is going to make some really difficult decisions. And I think our current government gets it.”