Eric Ham is based in Washington, D.C. and is a political analyst for CTV News. He’s a bestselling author and former congressional staffer and writes for CTVNews.ca. U.S. President Donald Trump is once again threatening additional tariffs on America’s northern neighbour. Without a deal in place by Aug. 19, Washington will implement duties on nearly $20 billion in products, including dairy, cement, clothing, wine, furniture, and hockey sticks. Talks broke down as the White House refused to renew CUSMA while the Commander-in-Chief continued his attacks on one of America’s closest allies. The impasse has now led to another tense moment in the already combustible relationship between the two nations. The clock is ticking down and there is little room for error. CTV News answers key questions to help you understand the impact of the current phase of Washington’s trade war on one of its closest friends and allies. Why these additional tariffs and more importantly, why now? Trump can be very difficult to pin down on many things, but what is abundantly clear and easy to ascertain is his great affinity for tariffs. Despite study after study refuting his claims that they are good for the economy, the president always finds a way to levy more tariffs, not fewer. Since the U.S. Supreme Court ruled many of the White House tariffs as unconstitutional, the Trump Administration has been hard at work trying to find avenues to implement import duties on goods coming into the United States. The reason for the tariffs now, particularly those on Canada, has not changed: Washington sees trade as a cudgel. The White House is attempting to force Ottawa to eliminate the ban on the sale of American alcohol in Canadian provinces and to rebalance persistent dairy policies. U.S. Trade Representative Jamieson Greer was recently quoted as saying that Canada has “uneven dairy treatment” with the U.S. market. Canadian dairy processors exported $585 million in dairy products to the U.S. last year, while the U.S. exported $1.3 billion in dairy products to Canada. Is there one central issue or sticking point that is driving tensions? As mentioned earlier, tensions over dairy products have only festered and gotten worse during the Trump administration. Cross-border dairy sales account for roughly one-tenth of 1% of overall trade between the two countries, yet Canada’s efforts to limit dairy imports remain a major sticking point. Meanwhile, the president has continued to press for greater access to the Canadian market. During the first CUSMA negotiations, the U.S. dairy industry asked for access to 10% of Canada’s dairy market but only received 3.25%. Since then, the U.S. and Canada have battled in trade dispute resolution panels over whether Canada has provided that access. Each side has won a case, but the Canadians won the last round in 2023. Still, even with restrictive markets and tightly controlled access, the U.S. maintains a $432-million advantage in dairy trade. “We won’t apologize for wanting a strong Canadian dairy sector that ensures a reliable supply of milk from Canadian farms, produced to Canadian standards while contributing to Canada’s economy and the vitality of its rural communities,” said David Wiens, president of Dairy Farmers of Canada. If the White House can gain access to the Canadian dairy market, Washington will undoubtedly consider it a major victory in its ongoing back and forth. Can anything be done on the U.S. side, barring an about-face from the White House, to bring these tariffs to an end? Trump’s tariffs have already drawn backlash from inside his own party. Republican Senate Majority Leader John Thune is skeptical of the president’s announced excise taxes. The GOP leader said, “I’m not a huge fan of tariffs as a general rule, unless there’s a specific purpose behind it, in most cases, creating a more level playing field for America’s businesses and our economy.” He went on to say, “… I haven’t heard the rationale for this one just yet.” Additionally, Republican Senator Susan Collins, who is in a tough re-election campaign in Maine, said she has “voted repeatedly against the Canadian tariffs.” “Maine and Canada’s economies are very intertwined… I don’t want to see the tariffs on the books,” the embattled lawmaker said. However, Congress does not appear willing to cross Trump in an effort to stop the pending duties by enacting veto-proof legislation. Still, that has not stopped states from confronting the White House. Twenty-five Democratic attorneys general are suing the Trump administration over its latest round of tariffs, calling them a pretext for replacing import taxes the Supreme Court struck down in February. New York Attorney General Letitia James, no stranger to legal pugilism with the president, said, “After losing at the Supreme Court, the administration is once again trying to illegally raise taxes on families and businesses with a new round of tariffs.” The complaint, filed in the U.S. Court of International Trade, asks the court to halt the tariffs, declare them unlawful, and order refunds of duties paid. If the tariffs are allowed to go into effect, barring an abrupt change from the White House, any relief will have to come from the courts.
