President Donald Trump expressed optimism about resolving a trade war with Canada, saying that a deal could come “fairly soon,” but provided no details into whether formal talks between the two economies had resumed.
Trump was asked Saturday whether he intended to have the US leave the US-Mexico-Canada Trade Agreement, during a meeting with Irish Prime Minister Micheál Martin in Dublin.
The US president sidestepped that question, saying that Canada wanted to reach a deal with Washington and that he was seeking better terms for US farmers.
“Canada has to treat our farmers better, and they can’t charge our farmers tariffs. They’re charging our farmers 400 per cent tariffs and many other things, so when those things go away, they’re willing to get rid of it all,” Trump said, adding “You’ll probably see a deal with Canada fairly soon.”
The US and Canada have been locked in a clash that has expanded well beyond tariffs and that threatens to rupture cross-border supply chains relied on by key industries like auto manufacturing.
Talks in August on a broader trade deal collapsed at the last minute, leading Trump to follow through on threats to hit Canada with 50 per cent levies on billions of dollars in goods. Canadian Prime Minister Mark Carney retaliated with tariffs of their own on Sept. 8, hitting a score of US consumer goods and levying duties on many US steel products to 50 per cent from 25 per cent . Trump, in turn, announced additional counter-measures against Canada, including bans on certain products and expanded duties on others.
The tit-for-tat exchanges have transformed an economic dispute between the US and one of its closest allies into a broader confrontation. The US president has repeatedly mocked Canada, threatening to make it a 51st state and deriding its prime minister as just a “governor,” comments that have fueled anti-Trump sentiment north of the border and allowed Carney to cast himself as a defender of Canadian sovereignty. Trump also ordered that Lake Ontario’s name in US maps be changed to “Lake America.”
The spat has high stakes for Trump, whose Republican Party faces an uphill climb to retain control of Congress into November’s midterm elections. Trump’s popularity is at record lows with voters unhappy over his handling of the economy and Iran war.
Trump’s trade war with Canada also risks exacerbating high prices that have become a dominant concern for the electorate. Republicans in key border states, such as Michigan which is hosting a crucial Senate race, face blowback.
There is also the danger of further escalation, with no indication of when the two countries might resume formal negotiations. Trump has threatened to end sales of Canada-based Bombardier Inc. jets in the US and also raised questions over the value of Canada’s currency.
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