Displaying items by tag: tariffs

Justin Trudeau’s government is facing turmoil following the abrupt resignation of his finance minister, Chrystia Freeland. This was sparked by disagreements with Trudeau on how to handle the threats made by Donald Trump, who has vowed to impose a levy of 25% on imported Canadian goods unless the shared border is made more secure. Freeland accused Trudeau of prioritising ‘costly political gimmicks’ over addressing the economic risks posed by Trump’s policies. Her departure blindsided the government, bringing Trudeau and his shaky minority Liberals to the brink - exacerbated by losing a by-election in British Columbia. There have been calls from opposition leaders but also members of his own party for Trudeau to resign, and his approval rate is now only 28%. With the next federal election due by October 2025, Canada's political landscape appears increasingly uncertain.

David Frost, Britain’s trade deal negotiator, has warned the Cabinet that Brussels talks are heading for collapse. He told ministers to ‘take the moral high ground’ when speaking to their counterparts across the Channel in the face of Brussels stubbornness. He urged them to step up their ‘no deal’ planning in case talks over a new trading arrangement break down. Downing Street is preparing to issue warnings that the UK is heading for an ‘Australia-style deal’ - which in reality means tariffs on imported and exported goods under World Trade Organisation terms. Boris Johnson is expected to tell the EU27 to set new rules for their negotiator Michel Barnier, otherwise any hopes of a deal fade. If progress is not made at the next online UK-EU negotiators meeting there is talk in Whitehall of a British walkout. A senior Government source said, ‘Breakdown is entirely possible.’