The Decibel Making sense of Carney’s tactics in the U.S.-Canada trade talks
Jul 3, 2025
Adrian Morrow, The Globe's U.S. correspondent based in Washington, D.C., sheds light on Prime Minister Mark Carney’s fraught trade negotiations with the U.S. He discusses the risky move of rescinding Canada’s digital services tax to revive talks, and what that signals about Carney's strategy. The conversation dives into Trump's protectionist policies and how they complicate U.S.-Canada relations. Morrow also contrasts Carney's tactics with Trudeau's past methods, highlighting the high stakes and potential pitfalls of outdated economic policies in a modern context.
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Trump's Digital Tax Pressure Tactic
- Trump's cancellation of talks over Canada's digital services tax was a tactical pressure move.
- The timing was aligned with impending tax collection and the looming July 21 trade deadline.
Irony in Supply Management Disputes
- Trump's complaints about Canada's supply management are ironic given his protectionism stance.
- The US consistently demands Canada open these dairy and poultry markets for greater access.
Trump's Core Trade Goal
- Trump’s trade demands focus on US self-sufficiency and reducing imports.
- Other trade issues are subordinate rationalizations to this core economic goal.