美加贸易谈判破裂，特朗普政府拟对加拿大征收50%关税

Joining us now is Jeff Mason, white House correspondent for Bloomberg News, along with Jonathan Levin, a columnist for Bloomberg Opinion who focuses on U.S. markets and economics. Jeff, let me start with you. There was some bonhomie going into this, to use a phrase that be familiar to our Canadian friends to the North. Really good feeling taking place in these talks. Let me just read through the dueling statements that we got after here, or at least read a little bit from them, Jamison Greer, U.S.

Trade representative, saying Canada declined to finalize the trade deal under the terms agreed to earlier this week, despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market. Looking with the Prime Minister, Mark Carney said in his statement, we have recognized from the beginning that America has changed and that we will not return to our old relationship Canada has with the world once, and we will not allow any nation to determine our future.

We will set our own course to keep building Canada strong for all. Jeff Mason, first question to you what happened here late last night? Well, what it sounds like happened is that the outlines of a deal that they had a few days ago, which prompted President Trump to give negotiators a few more days to keep going. Collapsed. Uh, and there's a little bit of a competing narrative about why it collapsed with regard to, uh, whether the Canadians, uh, didn't like something or whether the US side didn't like something.

But in any case, it collapsed. And I think, uh, you know, I would take a second to step back and say, this is Canada that the United States is fighting with right now. The northern neighbor, uh, that has been, uh, not only a key trading partner for decades, but, uh, a friend and a close, close ally, not only here in North America, but as part of, uh, of the G8 or G7, what it's become. And, uh, this is this is our friend, shall we say.

And the two sides are the tension between the two sides are now, I would argue, nearly an all time high. Earlier in his term, the president also, uh, offered slashed, threatened slash, Uh, raise the possibility, we can say, of making Canada the 51st US state. That did not go over well there. And as you can see from Prime Minister Carney's statement, uh, that has prompted action in the north, uh, to really strengthen Canada's economy.

And he even said that earlier this week, when talks were still going, that the focus would remain on making Canada more independent from the United States. And that is certainly the direction that, uh, that his country is going now under his leadership. And that is popular with Canadians. Jonathan, we referenced it earlier, but I have a lovely little chart here from our Bloomberg colleagues. $900 billion in trade annually.

It seems to me there's two issues here. There's the policy itself and the impact of these potential 50% tariffs. But there's also the impact of this consistent unpredictability. I know markets hate it, and I know officials hate it too. When I talk to Canadian officials during the last round, the thing they were most frustrated about is not knowing what was going to happen. How are you expecting the fallout from this to go as far as markets open on Monday and as we see the impact of the tariffs themselves?

You know, I think markets have basically moved on from the tariff story, and I'm not sure that that's actually the right way to think about it. You know, like there's a sense that tariff pass through is over. It's no longer an inflation story. But I think if you look deep into the consumer basket in the United States, you see that we're still living with many of the ramifications of the decisions that were made in 2025.

I'll give you just one example. Right. So we're talking about a lot of agriculture products today. So consider the 2025 tomato tariffs that not a lot of people. Sure sure. Yeah that was on my pay board okay. Sure. Right. So okay there were first order effects, but a lot of people have have forgotten that we are only now living with the second order effects. Right. Tomato tariffs go into effect. uh, uh, you know, so farmers abroad decide not to plant as many as many tomatoes.

The domestic tomato industry suffers a freeze, and all of a sudden, voila! In the past few months, we're living with major produce section inflation in the United States of America. So when people think, well, these are just on again, off again, uh, decisions. The fact of the matter is there's a long line, there's a long lag in the decisions that are made today. And they could well be the inflation that we live with in 2027.

Jonathan, inflation has been the story of the week, I guess kind of the broader fiscal House story combined with the inflation story. And, uh, we saw Treasury Secretary Scott Benson's intervention in the bond market earlier this week, and the president was asked about that last night as he made his way to Myrtle Beach, South Carolina, to stump for Darlene Graham, who's who's running for Senate there. So take a listen to what he had to say about that intervention.

Did you direct Secretary Benson to intervene in the bond market? No, not at all. You know, he's a very capable man. He wanted to do it. He's very good at it. He has a good touch, very good natural touch for the bonds and interest. And he did that. The eels have come back up to bat, and you talk to him about another type of intervention. And that's something we have many types of intervention. That's one. The ultimate intervention is our military.

And uh, and we have to use that. We will. The ultimate intervention is our military in the context of, uh, bond market intervention. Jonathan. Alaska, what, you think the president meant by that? As I also note here, his comments about the Treasury Secretary having a very good natural touch for the bonds and interest that the Treasury Secretary floating, that there was more in his toolkit. Yet what did you make of the president's remarks, and what do you expect the Treasury Secretary to announce here in the days to come?

Well, so this is Treasury Secretary Scott Benson doing his best impression of King Canute. King Canute, of course, was the medieval king who marched down to the shore and commanded the tide to stop. And guess what? Just like King Canute. Uh, Treasury Secretary, uh, Beasant is not going to move the needle with, you know, that maybe 32 billion, a quarter of interventions in a $30 trillion plus bond market. It seems to me to be a nakedly political attempt to look like he is doing something less than three months before the midterm elections.

But as I say, I do not see this really moving the needle. This is an administration that, time and time again, has turned to gimmickry because it seems panicked about what is going on in the long end of the bond curve. We saw them change bank capital requirements. Uh, we saw them, uh, come out with the Genius Act, which had a real, uh, Treasury market angle to it. Uh, we saw them join, uh, Japan in the yen intervention.

And I think all of these things were basically backdoor efforts to address the situation in the long end of the yield curve, or at least prevent it from getting worse. And guess what? Each and every one of them maybe bought you an afternoon. Jonathan tomato tariffs and King Canute reference. As you're sitting right into the weekend you hear. Lovely to have you Jeff Mason. The bar is now very high. Um, Jeff, I do want to ask you about the larger policy ramifications of this, because there's this quote from the British Columbia Premier, David Alvey, this morning saying, uh, our politeness should never be mistaken for weakness, will always defend ourselves.

We didn't ask for this, but we'll keep fighting for as long as it takes. It seems to me that there is so many other non economic cooperation lanes between the U.S. and Canada. I think about nor ad, I think about Space Force. I think about the Air