Overview
- Bill C-202, enacted June 26, bars Canada’s foreign affairs minister from committing to higher duty-free quotas or lower tariffs on dairy, poultry and eggs in any trade agreement.
- Ottawa repealed its 3% digital services tax to restart negotiations with President Trump, who had paused talks and threatened U.S. tariffs over the levy.
- President Trump has publicly targeted Canada’s tariffs—exceeding 300% on imports above set quotas—as a top trade irritant and warned of reciprocal measures.
- Legal experts caution that royal prerogative may let the executive bypass the statute and that Parliament could repeal or amend the bill if concessions become necessary.
- Canada and the United States are pursuing a new economic agreement by July 21, with the dairy dispute as the chief outstanding hurdle.