U.S. and Canada might not reach trade deal, Trump says

By Mike Crawley, CBC News, RCI

Trump sent a letter to Prime Minister Mark Carney on July 10, threatening to hit Canada with 35 per cent tariffs on Aug. 1.  (Official White House File Photo by Joyce N. Boghosian; The White House/Facebook)

‘Canada could be one where there’s just a tariff,’ says U.S. president, with his Aug. 1 deadline looming

U.S. President Donald Trump says his country may not reach a new trade deal with Canada and could simply impose more or higher tariffs on its northern neighbour — something he’s threatening to do in one week’s time.

We haven’t really had a lot of luck with Canada, Trump told reporters Friday outside the White House in response to a question about the state of tariff talks with U.S. trading partners.

I think Canada could be one where there’s just a tariff, not really a negotiation, he said, before departing on a trip to Scotland. It’s the first time Trump has publicly spoken about the state of talks with Canada in nearly two weeks.

Trump sent a letter to Prime Minister Mark Carney on July 10, threatening to hit Canada with 35 per cent tariffs on Aug. 1.

That rate would apply to Canadian exports currently being tariffed at 25 per cent, under Trump’s emergency powers, citing the national security threat from fentanyl trafficking. Most Canadian goods are exempt from that tariff, provided they meet the North American content rules of the Canada-U.S.-Mexico Agreement (CUSMA).

Separately, Canadian steel and aluminum are facing a 50 per cent tariff that the U.S. has imposed on such imports from all countries, while the U.S. tariff on Canadian energy and potash is set at 10 per cent.

WATCH | Canada’s trade team downplays prospects for deal by Aug. 1:

Trump made his comments after a reporter asked what he expects between now and next Friday, the date set for imposing new or higher tariffs on many of the U.S.’s biggest trading partners.

Aug. 1 is going to come and we will have most of our deals finished, if not all, Trump said. He spoke of progress in talks with Australia, the European Union and China, but singled out Canada for criticism.

‘Haven’t been focused on’ Canada

We don’t have a deal with Canada; we haven’t been focused on them, Trump said.

Trump’s comments are the latest nail in the coffin of Canada’s prospects for a deal by the U.S. president’s deadline, with Carney and his government sending out plenty of signals they’re in no rush to sign an agreement.

During a visit to Washington on Thursday, Canada’s top trade negotiators downplayed the likelihood they’ll get an agreement by Aug. 1.

We’re going to continue to work toward the Aug. 1 deadline, said Canada-U.S. Trade Minister Dominic LeBlanc. But all of these deadlines are with the understanding that we’ll take the time necessary to get the best deal that we think is in the interest of the Canadian economy and Canadian workers.

Earlier this week, Carney had told a news conference that his objective is “not to reach a deal whatever it costs.”

After Carney met with Canada’s premiers, Nova Scotia’s Tim Houston said the prime minister isn’t dead set on signing a deal by the deadline.

Unclear what’s keeping Canada & U.S. apart

On Friday, Trump gave no specifics about the obstacles preventing the U.S. from reaching a tariffs deal with Canada.

In the past, he has complained about border security and fentanyl trafficking, despite little evidence that Canada is a significant source of illegal migrants or illicit drugs into the U.S.

Trump has also objected to a proposed tax on the services provided by such online giants as Amazon, Apple, Google and Netflix and called off trade talks with Canada until it was gone. That quickly prompted Carney’s government to scrap it.

He has railed against Canadian measures to limit imports of U.S. dairy products — and did so back in his first term as president — but Carney’s government vowed in its throne speech in May to protect supply management.

WATCH | Lutnick: Most goods from Canada come into U.S. tariff-free:

The last time Trump spoke publicly about trade talks with Canada was in a July 14 interview with the BBC’s Gary O’Donoghue.

We’re negotiating with Canada right now and we’ll see how that all works out. I think it’s going to work out very well, Trump said at the time.

Trump’s Commerce Secretary Howard Lutnick met one-on-one with LeBlanc this week, with the Canadian minister describing the discussion as productive and cordial.

LeBlanc said he intends to return to Washington next week to continue the talks, which he’s been spearheading alongside Canada’s chief U.S. trade negotiator, Ambassador Kirsten Hillman.

This article is republished from RCI.