The House: Trade dispute with Donald Trump escalates
Canada's foreign affairs minister says the federal government is willing to look at further reshaping the retaliatory tariffs list meant to counter U.S. duties.
Chrystia Freeland told The House that if companies still have reservations about the list, they should contact the government to share those concerns.
"We're happy to consider new issues," she said.
On Friday, the federal government unveiled an updated list of U.S. products that are about to be slapped with tariffs while promising to spend up to $2 billion to protect jobs in the steel and aluminum sectors on this side of the border in the wake of a burgeoning trade war with the U.S.
While much of the list resembled the original one released at the end of May, the government added some items like cast-iron grills, refrigerator-freezers and pillows to the list and removed others, like steel, iron beer kegs and prepared mustard.
The tariffs will go into effect Sunday, backed by a substantial amount of industry and consumer support.
"I think it's important that Canada follow through with these tariffs, because there is no justification for what the Trump administration has said about Canada," Leo Gerard, president of the United Steelworkers labour union, told The House.
Gerard explained while he supports U.S. tariffs on steel and aluminum, they should never have been applied to Canada.
Other nations, like China, South Korea, and Mexico "cheat like crazy," he added, and that's who Americans should focus tariffs on.
But the way things stand right now, the workers will likely be the ones to suffer.
"I think it's important that workers don't bear the brunt of these stupid internal fights," he said.
The United States imported 26.9 million tonnes of steel in 2017, and more than four million, or 16 per cent of it, came from Canada.
Freeland said the government has endeavoured to shape the tariffs to put as little pressure on Canadian industries as possible — including crafting the list to make sure there are Canadian and non-U.S. alternatives available.
"I'm very confident that Canadians understand why we're doing this," she said.
"I hope that Canadians will be really proud to do their part."
Buying Canadian products is what former British Columbia Premier Christy Clark wants to see more of, because with this U.S. administration "if you do nothing you get punished, if you do something you get punished."
While premier, Clark proposed banning shipments of thermal coal from the U.S. through B.C. because of American tariffs on softwood lumber.
Now, she's calling on provinces to get on board with inter-provincial trade to support the Canadian economy.
"Provinces need to step up and be part of the solution," she said.
The entire situation isn't ideal, Freeland said, and tariffs are coming in as a last resort.
"We think it should end tomorrow," she said. "Absurd things, especially in the economy, it's not sustainable."
Tariffs 101: An explainer
In response to U.S. tariffs on steel and aluminum, Canada is poised to fight back with its own dollar-for-dollar tariffs set to come into effect on July 1.
Steel and aluminum are on the proposed list of duties, but so are things like pickles, beer kegs and chocolate.
The Canadian government asked for thoughts from the public when crafting the list, but with such a broad range of products it can be difficult to understand the full impact on Canadian consumers.
The House asked Laura Dawson, director of the Wilson Centre's Canada Institute, to break down the intricacies of the duties — Tariffs 101, if you will.
What do the tariffs mean on a ground level? On pickles, for example.
"There's two kinds of tariffs, export tariffs and import tariffs. Mostly we're talking about import tariffs. That means on the pickles when that one dollar jar of pickles comes into Canada, then that 10 cents is assessed at the border. It's paid by the importer and that price is usually passed on to the consumer."
Where does that money then go?
"It goes directly into the federal treasury. So it's technically a source of government revenue … Since we've gone into a WTO system and the various trade agreements, we have reduced the tariffs that are in play. In fact, between the United States and Canada, almost everything is tariff free — everything except dairy and poultry products."
What about steel and aluminum tariffs? How will that work at the border?
"It gets applied at the border, so as soon as whoever is landing that product there's paperwork that you need to fill out. And at that time, you pay CBSA the fees and tariffs that are owing at the time before you are cleared to land that product in Canada."
Steel often crosses the border several times before it becomes a final product. How many times does that tariff get applied?
"Every time it goes across the border the tariff gets applied. Sometimes there's things called drawbacks and remissions, so that if you're processing a product in Canada and then sending it back to the United States you can apply for a rebate."
How will the metal tariffs — and automobile tariffs, if Donald Trump makes good on that threat — affect consumers?
"It will definitely mean a cost increase. It means that that product will be more expensive … I think the government has chosen to find things that there are Canadian domestically produced alternatives to so that you're not going to be immediately penalized. You can find some other mustard to buy, for example. But on things like steel and aluminum, you as a manufacturer in Canada are going to have a really hard time going out and finding another source of that product. It's going to be costly."
Scheer sees role for notable Conservatives in fixing trade dispute
Conservative leader Andrew Scheer says he believes former prime minister Stephen Harper could be helpful as Canada navigates a tumultuous relationship with the U.S.
When asked about Harper's upcoming meetings in Washington D.C., Scheer said any time you have high-profile Canadians promoting free trade, it's a good thing.
"I think that Conservatives can be helpful," he told The House, citing former prime minister Brian Mulroney and former interim party leader Rona Ambrose's contributions to the trade negotiations.
Harper is expected to travel to Washington on Monday, July 2, CBC News has confirmed. He is scheduled to have meetings with Larry Kudlow — the director of the National Economic Council and Trump's go-to economic adviser — and John Bolton, the president's national security adviser, according to multiple sources who spoke to CBC News on the condition of anonymity.
A spokesperson in Scheer's officer said he wasn't aware of Harper's planned meetings before media reports confirmed it.
Scheer has been critical of some of the government's tactics in dealing with U.S. tariffs on steel and aluminum, saying Canada should have immediately imposed metal tariffs of their own.
However, he said his party is committed to pushing Canada first.
"While we will hold the government to account here at home... we will support their efforts to get a good deal for Canada."
The Conservatives spent much of the end of this session of Parliament pushing the government on issues like trade, immigration and the carbon tax, but also asked questions about new fixtures at the prime minister's summer residence — including a swing set.
The party drew criticism for isolating that fact when it was later learned that Justin Trudeau had paid for the play structure himself.
Scheer said it took the prime minister a long time to correct the assumption that it had been paid for with taxpayer dollars, but the party has also come under fire for figures they used to attack the Liberals' carbon tax plan.
The statistics, appearing in a tweet on Scheer's account, showed the cost of a carbon tax in each province. However, the report cited used estimates of $100 per tonne, when the federal plan would come in at $50 per tonne. The author of that study later tweeted that the facts used by the Conservatives misrepresented her work.
"When we put information out … we go by the facts represented," Scheer responded, adding if figures are updated or changed, the party will correct their posts.
A carbon tax definitely won't be featured in the Conservative platform leading into the 2019 election, Scheer said. Some provinces have stated their opposition to the current Liberal plan, and Scheer said Conservative premiers — like Doug Ford — will join in the fight against the tax.
Their climate plan is coming, but Scheer refused to say exactly when.
"It will come out well ahead of the next election with enough time for scrutiny and analysis," he said.
The party has made gains in Quebec, including a big win in Chicoutimi-Le Fjord — handing the Liberals their first seat loss since Justin Trudeau became party leader.
Scheer has focused much of his work since becoming party leader last spring on Quebec.
He told host Chris Hall he's always believed Quebecers have conservative views on many issues like immigration and the carbon tax, but admitted his party has struggled in that province in the past.
"For some reason over the past few years we have been able to click or make that connection."
Scheer's mind is also on ridings the Conservatives lost in 2015. He explained he's trying to assess what went wrong, then go back to those areas to fix the issues.