Latest / THE DAILY BRIEF / U.S. bans Canadian imports as trade war continues
Transcript
- 0:00Speaker 1: Here's Morning Live host David Common on what you need
- 0:03Speaker 1: to know about the Trump administration's latest escalation in the
- 0:06Speaker 1: trade war.
- 0:08Speaker 2: Neither country has gone this far in the trade war,
- 0:11Speaker 2: that is until today. So Canadian alcohol, dairy, motorcycles, molasses
- 0:17Speaker 2: and whey products can no longer enter the United States.
- 0:22Speaker 3: They decided that tariffs weren't enough. They wanted to ratchet
- 0:26Speaker 3: it up to a ban.
- 0:28Speaker 1: Bans are really hard to get off.
- 0:30Speaker 2: Alcohol makers will take the biggest hit by far. The
- 0:33Speaker 2: Trump administration defending this by pointing to the 8 out
- 0:37Speaker 2: of 10 Canadian provinces that pulled U.S. booze off their
- 0:40Speaker 2: shelves 18 months ago. One of the businesses being hit today?
- 0:44Speaker 2: Moosehead Beer.
- 0:46Speaker 4: If this ban goes on for an extended period, we
- 0:50Speaker 4: are basically going to have to start from scratch in terms.
- 0:53Speaker 1: Of the U.S.
- 0:54Speaker 2: And that's going to take time, money and effort to rebuild.
- 0:58Speaker 2: Consider Canada's Crown Royal. It sells more product to Texas
- 1:03Speaker 2: than to all of Canada. Now American store shelves, they're
- 1:06Speaker 2: going to be replaced by something else. It will disproportionately
- 1:10Speaker 2: impact businesses in Ontario. Buy a long shot, Quebec coming
- 1:14Speaker 2: in second. Though on the scale of the entire Canadian economy,
- 1:18Speaker 2: this is actually the smallest of all of the hits
- 1:20Speaker 2: from the White House by dollar value.
- 1:24Speaker 1: That's Morning Live host David Common. As of 12.01 a.m. Eastern,
- 1:28Speaker 1: some Canadian products, including dairy, motorcycles and booze, can no
- 1:32Speaker 1: longer cross the border. Yet Donald Trump says he believes
- 1:36Speaker 1: a deal can be struck in the coming weeks. Meanwhile,
- 1:39Speaker 1: as we heard from Rafi, the Carney government is looking
- 1:42Speaker 1: for major projects and investment to grow the Canadian economy.
- 1:46Speaker 1: Let's bring in the CBC's J.P. Tasker in Washington. So, J.P., first,
- 1:49Speaker 1: walk us through what the Trump administration's strategy is right now.
- 1:54Speaker 4: Yeah, the Trump administration is moving to inflict even more
- 1:57Speaker 4: economic pain on Canada by imposing import bans. That's a
- 2:00Speaker 4: new maneuver for the president. Of course, his preferred tool
- 2:03Speaker 4: is tariffs, as we all know well. Now, he's outright
- 2:06Speaker 4: banning a list of Canadian-made products. Motorcycles, molasses, cheese byproducts
- 2:12Speaker 4: like whey are being blocked, among other items that will
- 2:14Speaker 4: be entirely prohibited from crossing the 49th parallel as of today.
- 2:20Speaker 4: But it's the U.S. restrictions on Canadian alcohol that will
- 2:22Speaker 4: be the most damaging overall to the economy. Canada shipped
- 2:26Speaker 4: about $ 1. 2 billion worth of liquor to the states last year,
- 2:31Speaker 4: according to StatsCan data. The vast majority of that product
- 2:34Speaker 4: comes from Ontario. The administration has set its sights on
- 2:37Speaker 4: Premier Doug Ford's province for obvious reasons. I think there's
- 2:40Speaker 4: some bad blood, some bilateral bad blood between the two leaders.
- 2:45Speaker 4: Here's how the president explained why he's targeting Canada. Have
- 2:48Speaker 4: a listen.
- 2:51Speaker 3: And they feel entitled. They're not a state. There's nothing
- 2:56Speaker 3: they have that we need. We have more energy than
- 2:58Speaker 3: they have. We have all the lumber you could possibly use.
- 3:02Speaker 3: We have everything we have we don't need. And they
- 3:06Speaker 3: have to treat our country with respect. They've been very,
- 3:09Speaker 3: very bad to our farmers in particular.
- 3:13Speaker 4: Of course, the president's claim that he doesn't need anything
- 3:15Speaker 4: from Canada is bogus. Canada exported more than 4 million
- 3:18Speaker 4: barrels of oil last year. feeding Midwest refineries entirely dependent
- 3:23Speaker 4: on Canadian oil. Then there's, of course, potash, Andrew. Canada
- 3:26Speaker 4: exported 12 million tons of that to the U.S. last year.
- 3:30Speaker 4: So really, what's going on here is Trump wants some
- 3:33Speaker 4: retribution against Canada for banning alcohol. He's not happy that
- 3:37Speaker 4: so many provinces have left it off the shelves. And
- 3:40Speaker 4: so he's going to make Canadian breweries, wineries, distilleries pay
- 3:44Speaker 4: a very steep price.
- 3:46Speaker 1: Is there any talk of a resolution?
- 3:49Speaker 4: No, not really, Andrew. I mean, Canada U.S. Trade Minister
- 3:52Speaker 4: Dominic LeBlanc says, Dominic LeBlanc, you know, he says that
- 3:55Speaker 4: they're not desperate for a deal with the Americans right now.
- 3:58Speaker 4: He doesn't feel like they need to go cap in
- 4:00Speaker 4: hand to Washington right now trying to get the Americans
- 4:03Speaker 4: to sign on to something. The feds don't want to
- 4:05Speaker 4: settle for what they're calling a bad deal, even if
- 4:07Speaker 4: it means living with these tariffs and these import bans
- 4:10Speaker 4: for a little while longer. U.S. Trade Representative Jameson Greer
- 4:14Speaker 4: also says that the administration is comfortable with the state
- 4:18Speaker 4: of the relationship as it is now with Canada. They're
- 4:20Speaker 4: not itching to get a deal anytime soon, if we're
- 4:22Speaker 4: to believe some of their public rhetoric. But the President
- 4:25Speaker 4: suggested that maybe the Prime Minister, Mark Carney, and his
- 4:28Speaker 4: team will be calling for a deal soon. Have a listen.
- 4:33Speaker 3: Over the next three or four weeks, they're going to
- 4:36Speaker 3: come to us and they're going to say, we're going to.
- 4:39Speaker 5: Get rid of all the tariffs. We're going to win everything.
- 4:43Speaker 5: We even have Lake Ontario is now Lake America. They're
- 4:48Speaker 5: going to come in, and they're going to say, sir,
- 4:51Speaker 5: we are sorry.
- 4:53Speaker 3: They've treated the United States very, very badly. I think
- 4:57Speaker 3: a deal will be made, but it's got to be
- 4:59Speaker 3: a fair deal.
- 5:01Speaker 4: The problem is, of course, Andrew, what does the president
- 5:03Speaker 4: mean by a fair deal? I mean, the terms of
- 5:05Speaker 4: the last deal were supposed to be fair. That didn't
- 5:08Speaker 4: work out so well for Canada, right? There were serious
- 5:10Speaker 4: concerns about sovereignty. The language in that deal just didn't
- 5:13Speaker 4: work for Canada. So it could be a while before
- 5:15Speaker 4: the prime minister sees something that he can live with. Andrew?
- 5:20Speaker 1: I don't think anyone's going to be apologizing to the U.S.
- 5:22Speaker 1: president about all this anytime soon. J.P., thank you. CBC's J.P. Tasker,
- 5:27Speaker 1: live in Washington.