The National Post reports in its Thursday, July 23, edition that the Trump administration's new round of tariffs on Canadian goods may be less of a reprisal over trade barriers and more about gaining leverage in CUSMA negotiations, trade watchers suggest.
The Post's Tracy Moran writes that the legality of the measures is debatable, but they put Canada in a tough spot: retaliate and escalate the trade war, or go along with the U.S. administration's approach.
On Monday, the White House invoked Section 338 of the Tariff Act of 1930, allowing for the imposition of tariffs in response to discriminatory trade practices.
Trade Representative Jamieson Greer said in a statement explaining the move that the U.S. is working to secure fair trade deals, but Canada continues to retaliate against the U.S. for efforts to protect industry in sensitive sectors.
Alfredo Carrillo Obregon, Cato Institute's trade policy analyst, said he thinks there's more to it.
He said: "This is probably more of a way to get negotiating leverage over Canada. It seems to me that it's pretty tethered to the USMCA negotiations rather than this being the new sort of tariff authority that the administration is going to start using left, right and centre."
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