The United States has agreed on a trade framework with the European Union, but Canada is still without a deal and could face the threat of steep new U.S. tariffs as early as Friday. U.S. President Donald Trump and European Commission President Ursula von der Leyen announced an agreement Sunday that sets a 15 per cent tariff on most goods traded between the two economies. It is the latest in a series of agreements the U.S. has signed with allies including Japan, the U.K., and Vietnam. Canada, meanwhile, remains under the threat of 35 per cent tariffs on exports, if an agreement isn’t reached by Trump’s Aug. 1 deadline. The country is already facing U.S. levies on steel, aluminum, and automobiles. New tariffs on copper are expected to kick in next. Former White House official Larry Haas says Ottawa has reason to be concerned. “The tone between the United States and Canada is a lot more negative than the tone seems to be between the United States and the EU,” Haas said during an interview with CTV News Channel on Sunday. “I think both countries... are preparing for the very strong possibility that we’re going to get tariffs.” Haas said the deadline could still shift, depending on economic signals. “Trump has backed away from other deadlines when it came to tariffs,” he said. “If we approach August 1 and these tariffs are looming, and the stock market all of a sudden becomes shaky, I could envision another extension.” Canada has taken steps to respond to U.S. pressure, including boosting border inspections and cancelling a digital services tax. Still, Haas says the Canadian government faces a difficult negotiating environment. “President Trump respects strength as opposed to weakness,” he said. “Canada needs to make clear to the United States that it’s not going to take just any deal.” Haas said tariffs are not a “formula for long-term economic growth,” but not “Canadian officials or anyone else is going to talk President Trump out of his fondness for tariffs.”
