Ford and Legault Express Optimism and Caution on Canada-U.S. Trade Deal Deadline

Ontario Premier Doug Ford believes it's realistic for Canada to reach a trade deal with the US by August 1. Quebec Premier François Legault is anxious to see what will be presented. However, Ford acknowledges that President Donald Trump is unpredictable, adding to the uncertainty surrounding the trade negotiations.

Ontario Premier Doug Ford has called on the Canadian federal government to impose retaliatory tariffs on U.S. goods ahead of the Aug. 1 trade deal deadline. Ford warned that weakness towards President Trump could lead to harsher U.S. actions and suggested reintroducing an electricity export surcharge if negotiations do not yield a fair agreement.

Tensions are rising after Trump threatened steep new tariffs and criticized Canada over fentanyl-related concerns. Ontario Premier Doug Ford is urging the Canadian federal government to impose retaliatory tariffs on U.S. products, according to CTV News. Ford said he wants these tariffs to be “dollar-for-dollar” ahead of the Aug. 1 deadline to negotiate a new free trade agreement between the U.S. and Canada.

“There is one thing President Trump understands. It is strength. He doesn’t understand or appreciate weakness. He will roll over us like a cement roller if you show an ounce of weakness with the president, in my opinion,” Ford said to reporters on July 22, ahead of a meeting in Huntsville, Ontario.

Ford also suggested reintroducing a surcharge on electricity exports to U.S. states if the ongoing trade negotiations do not lead to a fair agreement. In March, Ford temporarily imposed a 25% export tax on electricity sent from Ontario to the U.S. states of Michigan, Minnesota, and New York, as a response to U.S. President Trump’s trade policies. Ford reversed his decision on the electricity export tax after Trump threatened to double the tariffs on Canadian steel and aluminum to 50%.

Trade talks between Canada and the U.S. are reportedly continuing, with formal meetings taking place since U.S. President Donald Trump revealed more threats and demands last week. Prime Minister Mark Carney stated that tariffs will likely be part of any U.S.-Canada trade deal, as the U.S. does not seem willing to sign an agreement without them. Carney also expects trade talks to intensify in the next few weeks.

The trade negotiations between Canada and the U.S. have been tumultuous, with Trump threatening to impose 35% tariffs on Canadian goods starting Aug. 1. Trump cited reasons such as Ottawa’s trade deficit, counter tariffs, dairy trade restrictions, and failure to halt fentanyl from crossing the border. However, Trump did not outline exactly what Carney needed to do to get things back on track.

The deadline pressure and past measures indicate that a deal must be reached by Aug. 1 to avoid higher tariffs on Canadian products. If a deal is not reached, the U.S. may impose higher tariffs on Canadian products. This uncertainty adds to the complexity of the negotiations and the potential economic impact on both countries.

[1] https://san.com/cc/ontario-premier-urges-canada-to-impose-retaliatory-tariffs-ahead-of-us-deadline/
[2] https://nationalpost.com/news/politics/u-s-canada-trade-talks-back-underway-as-trumps-wish-list-from-oil-to-dei-keeps-growing