Fen Osler Hampson

In the aftermath of the decision by the US to ratchet up tariffs to 35% on all non-CUSMA-compliant Canadian exports, Canada finds itself at a crossroads. …Automobiles and softwood lumber are also in his crosshairs. Unless there is a breakthrough in talks soon, or relief through successful court challenges… further trouble may arise unless we adjust our strategy. The time has come for Canadian negotiators to consider redirecting talks away from tariffs to tariff rate quota-based (TRQ) trade. …By their nature, tariffs are blunt instruments. When the US slaps a 35% duty at the border, Canadian producers do not recoup any benefit; rather, it is the US Treasury that lines its pockets. Quotas, on the other hand, set a ceiling for managed trade. …BC Premier David Eby has called for TRQs instead of tariffs on BC lumber exports to the US. The same principle should be applied to Canadian exports in steel, aluminum, and autos.