We can all take a deep breath and relax now on this side of the border; Canada will be given an exemption from Donald Trump’s tariffs on steel and aluminum.
That’s certainly good news for the Canadian economy in general and especially for our local Hamilton economy.
WATCH ABOVE: Donald Trump proclaims steel and aluminum tariffs but Canada and Mexico exempt
Had this gone the other way, it may have cost us about 10,000 local jobs and tens of thousands more in spin-off employment.
But, before we start dancing in the street in jubilation, let’s remember that Trump indicated that one of the main reasons for the exemption was that NAFTA renegotiations are still ongoing.
You can bet that the Americans will use the threat of the tariffs as a major bargaining chip in future NAFTA talks, and you can bet that the Canadians will be expected to ante up some major concessions in return for the exemption.
We’ll see how that plays out in the weeks ahead, but for now, we can enjoy a significant trade victory.
The other winner in this negotiation is Prime Minister Justin Trudeau.
Some reports say Trudeau’s phone conversation with Trump this week was what convinced Trump to exempt Canada from the tariffs.
Plagued by the fallout from his India trip, the Prime Minister needed a political win to change the narrative, and negotiating this deal with Trump may just be the ticket.