00:01:49.600the UK, Italy, Germany, France, they're all more than 40 million. So they're not going to look at
00:01:55.280Canada as something that's going to tip the balance for a lot of their businesses, unless
00:01:59.600there's also the access that comes with another 350 million people in the US, 100 million people
00:02:03.840in Mexico. I think it's important to note that Canada has essentially a free trade agreement
00:02:08.500in place with Europe that's merely waiting ratification in a lot of European capitals.
00:02:13.880One of the key sticking points, of course, is supply management. And that might be something
00:02:17.460that's familiar to us here in this country because it's one of the sticking points with
00:02:20.800the Americans as well. It seems that a lot of the world doesn't like this policy that we have in
00:02:24.880place and that we're refusing to put on the negotiating table. While the words are very
00:02:28.860nice coming from the Prime Minister and von der Leyen, the President of the European Commission,
00:02:33.220it's hard to know where we would actually take us beyond the CETA. And sort of someone who looks at
00:02:39.000it, hard to see. In terms of what it would mean, you know, I spent a lot of years working in
00:02:42.960Brussels. I was actually a member of the Brussels Bar. And so I'm familiar with these accession
00:02:47.080process and how long they take and you know the palace intrigue i mean the canadians are having
00:02:51.640fun discovering how how the powers of an american president relate to the powers of congress on trade
00:02:57.640wait till you get a look at the european president's powers relative to the member states
00:03:02.600relative to the european parliament we might actually be looking favorably on the on the
00:03:07.560american experience and now the canadian federation of independent businesses says that
00:03:12.44040% of small Canadian exporters are directly hit by this new round of tariffs, with nearly
00:03:19.300one-third expecting their revenues to drop by 50% or more. I want you to let that sink
00:03:24.900in. That's half of the revenue, because this is where the cute political slogans run into
00:03:30.380economic reality. It's easy for a Liberal cabinet minister with a government paycheck
00:03:35.380to say, we have to stand strong against Donald Trump. The whole other bowl game when you own
00:03:40.000manufacturing business and your American customer stops ordering altogether. Or you work at a mill
00:03:45.620in a small Canadian town and production gets cut in half. Or you're a Canadian distiller who sells
00:03:51.180half every product into the United States. Maybe Mark Carney has 340 million replacement customers
00:03:57.200hiding somewhere in Ottawa, or maybe he'll find them in China or something. Americans to this
00:04:01.920point haven't retaliated on our wines and spirits. And 50% of the spirits that are produced in Canada
00:04:08.300are sold in the united states that will not be the case for the section 338 tariffs and i think
00:04:13.480that's a bit of a warning to canada that you know if you're being tough because you think 85 percent
00:04:19.020of your trade is not covered by tariffs um have a look at what this feels like we have to admit
00:04:24.220that what is happening right now is certainly not good news for people who might be thinking about
00:04:28.740investing in canada a lot of them are interested in access to the american market that has gotten
00:04:33.200more complicated. In the lead up to this tariff deadline, I mean, I spoke with some textile and
00:04:38.140clothing manufacturers, and they were saying they were already feeling the impact just in the lead
00:04:43.200up to this. Layoff notices were going out. Production was being scaled back. So a lot of
00:04:48.920people here in this province are really going to be hurting in the coming days and in the coming
00:04:52.900weeks from these tariffs. You know, we've got over a million companies in this country, and you
00:04:58.620We cannot subsidize every business indefinitely into the future.
00:05:04.360It is not a long-term policy, strategy policy.
00:05:07.980They've got to get back to the negotiating table very quickly.
00:05:12.300Our research showed that the vast majority of small businesses in Canada were not eligible
00:05:19.200and those relief programs missed the target, generally speaking.
00:05:27.000I think the prime minister is telegraphing to Canadians and to Canadian businesses that this is going to be the status quo going forward.
00:05:35.600You can't replace the United States. Not tomorrow, not next month. Not because Mark Carney gives another speech about diversification.
00:05:43.160The United States is the massive, wealthy market sitting directly beside us that Canadian supply chains have been built around for generations.
00:05:51.340And now Carney says that he walked away because America asked too much and offered too little.
00:05:56.860Fair enough. Fair enough. That's his version.
00:05:59.760Trump administration is saying something very different.
00:06:02.100U.S. Trade Representative Jameson Greer said that Canada walked away from terms that they had agreed to earlier in the week.
00:06:08.900And a senior U.S. official says that the offer would have given Canada the best tariff position of any major exporter into the United States.
00:06:15.680There are many businesses across Canada, small and medium sized, who woke up that morning going, I don't know if I have revenues anymore.
00:06:24.420What am I going to do with my bank? How do I make payroll? How do I look at my employees?
00:06:30.200So there's a lot of concern. So I think the prime minister moved as quickly as he can to give assurances to Canadians that, OK, we understand what's going on and we're going to have some programs in place.
00:06:42.600And she says the goal of these programs has to be more than just saving jobs, but actually saving industries.
00:06:50.980And she says the programs will need to be more tailored than previous supportive industrial support programs
00:06:57.860because these tariffs will not hit all industries and nor will they hit the industries that are being hit uniformly across them.
00:07:06.500Now, in terms of Canadians in general, remember that the U.S. tariffs now, in effect, mostly hit American consumers buying Canadian products.
00:07:14.360So if Canada's counter tariffs do go into effect September 8th, that's when prices here will go up.
00:07:21.500And this is where we get into the part that Ottawa doesn't like talking about.
00:07:26.080Canada is not some innocent free trade angel randomly being bullied by Donald Trump.
00:07:31.340The White House specifically accuses Canada of discriminating against American commerce.
00:07:35.480We protect supply management, the Quebec Dairy Cartel. We have massive barriers around politically sacred industries. Provinces took American alcohol off their shelves. Canada was the only country other than China to retaliate. And then we act personally offended when the Americans say, OK, let's play that game. Here's 50 percent tariffs.
00:07:55.040And this is why Alberta and Saskatchewan deserve a lot more credit than they get.
00:07:59.980They never joined that ridiculous boycott in the first place.
00:08:03.840They left the decision to the consumer.