Meanwhile in the never ending Deal world.

Why is Donald Trump eager to claim that he’s made a deal with Canada
  	
 

This isn’t over.
U.S. President Donald Trump likes to win. He also often
likes to play make-believe. He has a habit of declaring victory on social
media based on few discernible facts, or none at all. 
When he has
something to market, he markets it. When he doesn’t, he’s liable to fake it
until voters believe that he’s made it.
How many times has he announced
that Iran is finished? That a peace deal is imminent? That the Strait of
Hormuz is open, oil has never stopped flowing and Oceania has always been
at war with Eastasia? 
I can’t count that high without an abacus.
The
former reality TV star also loves to engineer a cliffhanger. Hence his
decision to build a tariff time bomb – a 50-per-cent levy on $28-billion a
year of Canadian exports – and set it to go off at 12:01 a.m. on Aug.
19.


And then, just in the nick of time, he announced that all was saved,
and he had defused the device.
Less than two hours before midnight, he
wrote on Truth Social that the threatened tariffs were paused because,
“Canada and the U.S.A., subject to the finalization of documents, have a
DEAL!”
Prime Minister Mark Carney’s presentation of the situation,
published an hour later, was rather more circumspect. 
“Substantial
progress has been made,” the PM wrote, “although there is important work
still to be done.” He added that the U.S. had agreed to pause the tariffs
because “this work is ongoing.”

Trump made new trade deals with countries around the world. Here’s how they
played out
Recent days of intensive talks between Canada and the U.S., like
the months of not-much-talks that preceded them, have been marked by an
extreme level of opacity. Neither Ottawa nor Washington has itemized in
public what demands the U.S. has made of Canada, what Canada has asked of
the U.S., what has been put on the table by both sides, and what
horse-trading has taken place.
And yet there are many things we know.

We know that Mr. Trump wants most imports, including from his partners in
the United States-Mexico-Canada Agreement, to be subject to U.S. tariffs.
He’s made exceptions for products such as oil and potash – he doesn’t want
to visibly raise the prices Americans pay for gasoline or food – but he
appears set on subjecting manufactured imports to tariffs.


That is a
rather large problem for the integrated North American auto industry, and
many other Canadian industries.
He also wants the rest of the world to
meekly accept his tariffs and not hit back. Mr. Trump hasn’t appreciated
that Canada, unlike almost every other country, put up its dukes and
retaliated.
But retaliation has given us negotiating leverage.
In the face
of Mr. Trump’s demands for tariff acquiescence, Canada’s trade negotiators
appear to have spent months ragging the puck. They had reason to. 
Rita
Trichur: Artificial intelligence is Trump’s next cudgel against Canada on
trade

The USMCA is a binding legal agreement, signed by Mr. Trump and ratified by
the U.S. Congress. Standing on it makes sense. The President appears to
want Canada to accept treaty-violating tariffs, and for Canada to agree to
a rewrite of the USMCA that would render Mr. Trump’s treaty violations
treaty-compliant.
That said, Mr. Trump could also do with a political win.
Or at least something he can market as a win. 
Right now, American voters
have 99 problems with his administration, and a trade war with Canada ain’t
one. If he can turn a trade war most Americans have never heard of into a
claim of trade victory, it might subtract from the list of reasons to vote
against his party in November.


The only specific Mr. Trump mentioned in
his social media post celebrating a trade deal was the alleged possible
revival of “the great Keystone XL Pipeline.”
It’s a long-time Trump
obsession. It’s also a project that Canada badly wanted, but that two
Democratic presidents blocked. If Mr. Trump thinks of restarting Keystone
XL as a win for him? Hallelujah.

But there’s something else we know.
Trump trade policy – like Trump foreign
policy – has become a dysfunctional version of Deal or No Deal. It’s Deal
and No Deal. 
No price is final, even after final sale.
Adversaries and
partners have learned that Mr. Trump is not bound by law, treaty or
friendship, and has no compunction about breaking written commitments he
eagerly signed not five minutes ago. 


If an interim deal between
Washington and Ottawa really is inches from the goal line, that still
leaves a whole trade relationship in the balance – because this president’s
term in office still has 29 months left on the clock.
It remains unclear
how this week’s talks connect with broader negotiations over the future of
the USMCA. 

Mr. Trump wants to turn what was the world’s most important free-trade
deal into a creature with aspects of one-way free trade. He wants us to
agree to give him the freedom to build tariffs walls against us, while
demanding that we recommit to low or no tariffs against the U.S.
That’s why
this isn’t over. It won’t be so long as that man is in the White House.

Tony Keller
G&M Aug 19