Ontario's Ford calls for USCA deal, ready to drop tariffs

Investing.com -- Ontario Premier Doug Ford has called for the removal of tariffs between the United States and Canada, while also criticizing the United States-Mexico-Canada Agreement (USMCA). In an interview with CNBC today, Ford suggested that the tariffs should be dropped, and the USMCA deal should be revised to exclude Mexico.

The Premier expressing Canada's willingness to remove tariffs if President Trump reciprocates, saying "We'd be willing to take those off tomorrow if he took all the tariffs off." Ford voiced his preference for renegotiating the USMCA trade agreement to exclude Mexico, referring to it as a USCA deal. He highlighted concerns that Mexico is importing cheap parts from China, affixing a "made-in-Mexico" label, and thereby affecting jobs in the U.S. and Canada.

Ford mentioned a conversation last week with U.S. Commerce Secretary Howard Lutnick, where he expressed his concern that tariffs on Canada could also harm the American economy. He highlighted that the tariffs could lead to job losses in the U.S and continue their negative impact on Wall Street. Ford, a vocal critic of U.S. President Donald Trump's trade policy, accused Trump of targeting Canada, a key ally and customer of the United States.

In response to Trump's day of tariff imposition, which the President refers to as "Liberation Day," Ford labeled it as "Termination Day," citing potential job losses in the U.S. He argued that Canada is not the root cause of the U.S.' economic challenges, pointing instead to China.

According to Ford, Canada has prepared an additional $65 billion in tariffs, which could be implemented today. He confirmed that both Trump and Lutnick are aware that Canada is ready to remove their tariffs if the U.S. does the same.

Ford also criticized the USMCA deal, emphasizing Canada's equal standing with the U.S. in automotive trade. He stated that Canada buys as many cars from the U.S. as it sells, and purchases 400% more cars from the U.S. than Mexico and 200% more cars than any other country.

He reiterated that Canada is the U.S.'s top customer and trading partner for 28 U.S. states. He added that his province, Ontario, would be the U.S.'s third largest trading partner globally, with over $500 billion in two-way trade.

The USMCA agreement, which came into effect in 2020, is scheduled for review in 2026. However, Canadian officials have suggested an earlier review instead of negotiating on tariffs separately.

Furthermore, Ford canvassed his recent discussion with Lutnick, who expressed uncertainty about what would happen today after tariff implementation. He questioned if Lutnick was flourishing, or truly uninformed.

Ford did not express support nor opposition for Canadian Prime Minister Mark Carney in the upcoming election on April 28. Carney has spoken with Trump about holding comprehensive trade talks after the election, with a preference for Mexico's inclusion.