Until January, Suggest surveys That the Conservative Party would easily resume the power of the Liberals in any Canadian election held this year.
Trump’s trade war
While Mr. Trump withdrew from his initial threat of prices on everything imported from Canada, he imposed several measures that strike the key sectors of the Canada economy: a 25% tariff on cars, aluminum and steel, and a similar agreement on Canadian exports that did not sign in his first term according to management. A 25% automotive parts rate should take effect on Saturday.
Last week, Trump suggested that car rates, which are reduced according to their content made in the United States, could be increased. He did not offer any details.
Automobile parts and car parts are the largest exports from Canada to the United States, apart from oil and gas.
Canada strikes
Under Mr. Trudeau, Canada has placed reprisal prices on American products that are expected to generate $ 30 billion, or about $ 22 billion, in a year.
After having become a Prime Minister in March, Mark Carney imposed an additional $ 8 billion dollars, around 5.7 billion dollars, in prices, including a 25% levy on cars made in the United States – but not on car parts. Car manufacturers with mounting channels in Canada will still be able to bring in American manufacturing cars from these rights in rights.
The Canadian public also responded. Travel to the United States has greatly decreased. Alcohol stores belonging to the government in several provinces have removed American beer, wine and whiskey from their shelves. While calls to boycott American products grew up, Canadian manufacturers have hurried to decorate their packaging with maple leaves and Canadian flags.
How to manage Trump
Mr. Carney, who also succeeded Mr. Trudeau as leader of the Liberal Party, and Pierre Poilievre, the conservative leader and the other major competitor of the elections, adopted a hard line with regard to the American president.
In a conversation with Trump in March, Carney said that the president had agreed to start economic and security negotiations with the one who emerges as Prime Minister. During these talks, Mr. Carney said during a televised debate: “The starting point must be that of force.”
He added: “It must show that we have control of our own economic destiny.”
Throughout the campaign, Mr. Carney, who was governor of the Bank of Canada and later from the Bank of England, sought to emphasize that his history in the financial world make him the ideal candidate to meet both Trump and the economic challenges posed by his prices.
When he was asked how he would take care of Mr. Trump, Mr. Hairyvre, a life politician, generally replies by saying that he would first approach what he considers as problems that the Liberals created in Canada.
“I would reduce taxes, administrative formalities and approve our resource projects so that we can market our goods and bring jobs home so that we can resist President Trump from a position of strength,” he said during the debate.
The crisis will probably get worse
Mr. Trump’s car rates had an immediate impact. A factory in Windsor, Ontario, where Stellantis manufactures Chrysler Minavan and Dodge Muscle Cars, was closed for two weeks while the company considered its options. The association of automotive parts manufacturers said that its members had already dismissed several thousand workers in Ontario.
There have also been a small number of layoffs in the steel industry.
The price threatened with automotive parts can have a deep effect. Automotive parts manufacturers employ more people than the mounting channels for car manufacturers. Many rooms are small businesses, sometimes families without the financial resilience of multinational car manufacturers.
Economic ideas, but few details
The two leaders, but Mr. Hairy in particular, promoted the construction of oil and gas pipelines to facilitate fuel shipment in Europe. They did not offer any details on what companies, if necessary, are interested in these projects or on the way they are funded.
Mr. Hairyis also said that he would accelerate environmental examinations and consultations with Aboriginal groups for natural resource projects. Environmental groups and indigenous leaders criticized the proposal and questioned its legality.
For the automotive sector, Mr. Carney proposed to create a “all in Canada” system in which cars are assembled in Canada using Canadian parts made of Canadian steel and aluminum. He did not say how he would persuade car manufacturers to follow the plan.
Carney also promised to reserve $ 2 billion Canadian dollars to help the automotive industry adapt to American prices and promised that money collected on reprisal rates would be used to help companies and workers disrupted by the trade war. He did not specify what this aid would imply.
