'Canada is simply not the White House's priority right now' | Reid on looming trade deal deadline

Negotiation Strategy

🤝 Q: Should Canada continue negotiating with the US?
A: Yes, Canada should keep negotiating to avoid a no-deal scenario, especially if the White House is willing to extend the August 1st deadline without imposing retaliatory tariffs.

🚫 Q: Is it advisable for Canada to retaliate with tariffs?
A: No, Canada should not retaliate with tariffs as it may be ineffective in achieving goals and could lead to a worse status quo, according to CTV News political commentator Scott Reid.

Risk Assessment

⚖️ Q: What risks does Canada face in these negotiations?
A: Canada must juggle the risk of a no-deal scenario with the potential for a worse status quo if Trump imposes tariffs on new sectors.

🔍 Q: What should Canada prioritize in the negotiations?
A: Canada should focus on negotiating a deal rather than trying to choose between a deal and no deal, as advised by Scott Reid.

Understanding US Demands

🇪🇺 Q: What can Canada learn from the EU-US deal?
A: The EU deal shows the architecture of what Trump wants, including buying military equipment and agreeing to a sticker price tariff across the board.

🇨🇦 Q: Why is the EU-US deal model challenging for Canada?
A: This model is hard for Canada to accept due to its compliant sectors, making it difficult to replicate the EU's approach.

Trade Negotiations and Deadlines

🔄 Canada's trade deal with the US is in an intense phase with tense negotiations and doubt cast on the August 1st deadline due to the White House's lack of priority on Canada.

⏰ If the August 1st deadline passes without a deal, Trump may apply tariffs in new areas not covered by CUSMA, potentially creating a worse status quo than a no-deal scenario.

US-EU Deal Impact

🇪🇺 The US-EU deal reveals Trump's desired architecture: countries buying US military equipment and agreeing to a sticker price tariff across the board, which is challenging for Canada to accept due to many sectors being tariff-free under CUSMA.

💪 Trump's deal with the EU emboldens him, viewing it as a confession of his victory, potentially making him less willing to negotiate with Canada.

Canada's Options

🤔 Canada may have to choose between no deal and a much worse status quo if the US imposes tariffs in new areas, as the government would struggle to agree to tariffs injurious to Canadian industries.

🕰️ If the White House is willing to extend the deadline without imposing retaliatory tariffs, Canada will continue negotiations to reach a deal.

• 00:00 🤔 Canada's chances of reaching a trade deal with the US by Friday's deadline are slim, as the White House is not prioritizing Canada at the moment.
• 00:36 💡 Canada's trade deal with the US is not a priority for Trump, who is focused on deals with the EU and Asian countries, giving him leverage globally.
• 01:02 💡 Donald Trump may impose tariffs on Canada beyond current trade deal sectors if Canada doesn't meet his expectations by August 1.
• 01:37 💡 Canada faces a tough decision on a trade deal with the US, potentially choosing between no deal and a worse status quo, with the White House's willingness to delay tariffs a crucial factor.
• 02:09 🤔 Trump is likely to remain tough on Canada, viewing EU concessions as a victory that validates his negotiation approach.
• 02:34 💡 Trump wants the US to prioritize buying American goods, including military equipment, in trade deals, as seen in the EU agreement architecture.
• 03:00 💼 Canada may face a no-deal scenario with the US if it refuses to accept tariffs on a wide variety of goods and services.

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