Canada pushes for a trade deal as President Donald Trump plans to impose a 35 percent tariff on Canada on August 1.
SEATTLE — With less than a week before sweeping new tariffs take effect, U.S. Senator Patty Murray (D-WA) and British Columbia Premier David Eby are warning that President Donald Trump’s escalating trade war with Canada could devastate small businesses and border economies.
During a virtual press conference with Washington state business leaders, Premier Eby called the situation one of “mutually assured destruction,” as the U.S. prepares to impose a 35% tariff on Canadian goods starting August 1.
That’s on top of existing tariffs: 50% on steel and aluminum, and 25% on autos, excluding U.S.-made parts.
“The last time this happened was in the 1930s, and it led to a global economic downturn that devastated the world economy for almost a generation,” Eby said. “Cuts this time are hurting small businesses. They’re hurting families on both sides of the border.”
Sen. Murray echoed the urgency, calling Trump’s tariffs reckless and harmful for Washington.
“This is not reality TV. This is actual reality,” she said. “We cannot entrust this responsibility to a president who is toggling economic policies on and off like a kid with a joystick.”
Washington state is particularly exposed to the fallout.
Canada is its second-largest export market, with $7.9 billion in goods and $2.2 billion in services exported annually. The state also imports $17.8 billion in Canadian goods, and more than 25,000 Washingtonians work for Canadian-owned companies.
Tourism is also suffering as border crossings into Washington dropped 35% in May, according to the Bureau of Transportation Statistics.
Meanwhile, Canadian Prime Minister Mark Carney downplayed the chances of a breakthrough after an emergency meeting with Canadian leaders.
“We’ll agree to a deal if there’s one on the table that is in the best interest of Canadians,” Carney said as reported by the New York Times.
“It’s not our objective to have an agreement at any cost,” he later said in French.
Tensions flared earlier this week when U.S. Ambassador Pete Hoekstra criticized Canadian provinces for banning U.S. alcohol, calling Canada “mean and nasty to deal with.”
Premier Eby fired back: “If you’re a mean and nasty Canadian for standing up for our sovereignty, our economy and our jobs — well, I think most Canadians would be proud to be considered mean and nasty.”
Senator Murray said she understands Canada’s frustration and urged Congress to act.
“I understand where he’s coming from because he’s trying to fight back and he has very few tools to do it. So my plea is not to the premier. It is to the president of the United States,” she said.