Rabobank’s Global Strategist Michael Every flags growing trade frictions between the United States (US) and Canada ahead of USMCA (United States–Mexico–Canada Agreement) talks. Every says Washington is demanding market-opening concessions, tax changes and expanded border enforcement, effectively shifting negotiations away from equality. Every warns Canada may need to rethink its global position and faces downside risks for industrial exports and autos.

US demands challenge Canadian trade position

"Meanwhile, the US is reportedly demanding concessions from Canada before USMCA trade talks start as a form of “entry fee.”"

"These include opening dairy markets beyond USMCA commitments, eliminating the digital services tax that affects US tech giants, and accepting expanded US border enforcement jurisdiction on Canadian soil."

"Such US demands reduce the negotiation from one of equals to a realpolitik reflecting the economic weight each has, as well as treading on direct issues of sovereignty."

"Canada can reject these US demands or even risk walking away from the USMCA."

"Notably, US auto tariffs are already threatening the kind of downturn which that key Canadian industry last saw post-GFC."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)