Canada faces EU carbon tariff threat within months, internal documents say

▲ Escalating

Canada signs UAE trade deal as EU carbon tariff threat looms

On Wednesday Canada signed a trade agreement with the United Arab Emirates, aimed at cutting tariffs and red tape and widening market access. Internal documents say Canada faces a carbon tariff threat from the EU within months. Separately, US Trade Representative Jamieson Greer warned on Tuesday that a $3.4 billion European Investment Bank loan to Airbus could jeopardise the US-EU tariff truce.

• Canada's UAE deal is part of a push for non-US markets.
• Internal documents say the EU's Carbon Border Adjustment Mechanism is being fully implemented, exposing Canada to a tariff threat within months.
• Greer says his office received no details of the Airbus loan, announced in June, and urged the EU to resolve it quickly.
• European wholesale gas reached €97 per megawatt-hour on Monday, the highest since 2022, amid fears of Middle East supply disruption.