It was not so long ago, during the election campaign, that I remember Mr. Carney's soaring rhetoric, his stout orders calling for "Elbows Up, Canada!" and all that it implied in our 'battle' with the United States. We were told a new reality was upon us, and our former 'trusted partner' could no longer be depended upon. Lo, a total reordering of the trade world was drawing nigh, and we had to seek and support our real friends in the larger world, as well as respond to America's bullying with punishing counter-tariffs.
Well, that was enough for the Liberals to secure a strong minority, and truth to tell, I voted with some enthusiasm for Carney, arms akimbo, his opponents offering nothing credible. That said, I know that many, both online and offline, do not agree with my recent criticisms of the prime minister over how he dealt with the DST. The feeling seems to be to wait and see, and not to rush to judgement. Surely there is a strategy at work here.
Well, now comes another sign that my Carney carping was not out of line.
Prime Minister Mark Carney says he sees little evidence that it’s possible to strike a deal with President Donald Trump that removes all U.S. tariffs on Canadian goods.
This is the first time the Prime Minister has acknowledged that a pact to end the Canada-U.S. trade war would likely leave some of Mr. Trump’s protectionist tariffs in place.
“There is not much evidence at this moment of agreements, arrangements, or negotiations with the Americans for any country, any jurisdiction, to have a tariff-free deal,” Mr. Carney said.
Probably a realistic assessment, but what is the purpose of publically surrendering a vital negotiating position before those negotiations are complete?
The only reason I can think of is to prepare the public to start forgetting that bellicose campaign rhetoric.
William Pellerin, a partner with McMillan LLP’s international trade group, said Mr. Carney may be lowering expectations for what Canadians and Canadian businesses can anticipate from a trade deal with Mr. Trump.
He said he and his clients must now prepare for the possibility that U.S. tariffs are here to stay for the long term and that any Canadian business which made a short-term decision to “eat the tariffs rather than passing them on” to U.S. buyers may have to rethink that.
Mr. Carney’s comments “could also be a trial balloon that he’s floating to Canadians and to the markets to see how people react,” Mr. Pellerin said.
My reaction is the same as it was when I voted for Carney. I expect Canada to put up a real fight, a fight he cultivated during the campaign. A fight that would include strong counter-tariffs. Our pride was at new levels, and it was predicated on a defiance of the American trade madness.
And I am not alone in disdain for Carney's pending capitulation. People remember his caving earlier on the Digital Service Tax:
... to those pushing for a more hawkish approach to Trump’s trade war, it was an unacceptable concession after Canada already repealed its digital services tax and ramped up its defence and border security spending in response to Trump’s concerns.
“We should call this what it is. It’s extortion by the United States,” said Unifor president Lana Payne, who said normalizing the idea of tariffs could result in Trump pushing things even further, and urged Canada to push back with every tool at its disposal.
“The challenge we have is that we’re dealing with someone who continues to change the goalposts,” Payne said. “Giving things away up front has not worked for us.
And while it pains me to say this, I find I have to agree with little P.P.'s acerbic assessment.
“The Prime Minister is now conceding that American tariffs on Canada will be part of an eventual deal,” Mr. Poilievre said in a post on X.
“Another unilateral concession from a man who said he would never back down to the U.S. President.”
Mr. Carney seems to have perfected the art of making good speeches. Sadly, backing up those speeches with real action is proving to be something else entirely.
