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The Canada-U.S. trade war and what happens when brinkmanship blows up
Canadian officials say new U.S. demands on tariffs and streaming rules could damage Ontario auto plants and French-language protections.
Canadian negotiators received a United States draft on Friday evening containing unexpected demands to impose Tariffs on heavy vehicles and end streaming "discoverability" requirements, prompting Canada to order the team home.
Negotiators had expressed cautious optimism on Tuesday, not anticipating these demands; Canada ordered the team home to signal how critical the issues are to auto manufacturing in Ontario and cultural protections.
Tariffs on heavy cars and trucks would inflict severe damage on Ontario auto plants, while ending "discoverability" requirements threatens protections for French language and culture that Netflix and Amazon Prime currently operate under.
The walkout risks provoking tit-for-tat Escalation that hardens positions and mobilizes public outrage, yet experts urge the public to remain calm and give negotiators space to find workarounds benefiting both sides.
Simon Reisman walked out of the 1987 free trade negotiations to force political attention, a precedent where Prime Minister Mulroney sent senior leaders to Washington and eventually reached an agreement despite staged Escalation.